Bank of China Partners with Major French Bank for Digital Yuan Promotion
- The French international banking group BNP Paribas has partnered with the Bank of China to promote the adoption of the digital yuan.
- The Chinese clients of the French bank will be able to generate and maintain a connection system with the Bank of China.
- Users can link their digital yuan to their bank accounts, track transactions, and make payments using an e-CNY management system.
- The partnership between the two banks will facilitate “efficient, real-time, and convenient [digital cash] practice,” according to a report.
The digital yuan was one of the earlier implementations of a central bank digital currency (CBDC), which was issued to the people on the Chinese mainland following the surge in popularity of blockchain-based assets. Interestingly, BNP Paribas, a French international banking group founded in the year 2000 that has 190,000 employees in 65 countries, has announced its partnership with the Bank of China for the promotion of the digital yuan.
According to a report from the South China Morning Post, the partnership between the Bank of China and BNP Paribas will enable the Chinese clients of the French bank to generate and maintain a connection system with the Chinese bank.
Furthermore, the China-based users of BNP Paribas will be able to manage their digital yuan wallets by linking them to their bank accounts, track transactions, and make payments using China’s digital currency via an e-CNY management system. It has also been promised that the new system will make it easier for clients to use digital cash for real-time transactions.
The digital yuan management system generated as a result of the partnership between the Bank of China and BNP Paribas will facilitate “efficient, real-time, and convenient [digital cash] practice,” according to a statement shared by BNP, stated the report from The South China Morning Post.
It is also important to mention here that the French bank will also work to make use of the Chinese central bank’s digital currency in smart contracts, supply chain finance, utility payments, and cross-border payments. Interestingly, the local government has been trying hard to promote the development and adoption of the digital yuan among the citizens of the country.
The Chinese governments handed out millions in digital yuan in an attempt to boost the adoption rate of the CBDC, and around 200 “activities” for the e-CNY were launched across the country during the Lunar New Year period. Millions of dollars worth of digital yuan were given away to “promote consumption.”
As reported earlier by BitcoinWisdom, the pilot phase of China’s central bank digital currency (CBDC) experiment saw transactions total 100.04 billion yuan, or almost $14 billion, in October 2022, making the digital Chinese yuan, or e-CNY, the most commonly used CBDC globally. The Bank of China revealed at that time that about 360 million transactions had been completed in 15 provinces under the CBDC pilot program.
Additionally, in some pilot zones, the digital yuan was being used to pay taxes, including the regions of Shenzhen, Suzhou, Chengdu, and Xiongan. The banks in the region are also exploring ways to capitalize on the popularity of the digital yuan. As a result, many regional banks debuted “smart management” tools that can convert e-CNY to fiat and also detect when funds have been left idle for long periods.
A crypto journalist with over 3 years of experience in DeFi, NFT, metaverse, etc. Parth has worked with major media outlets in the crypto and finance world and has gained experience and expertise in crypto culture after surviving bear and bull markets over the years.
