- Standard Chartered Bank will allow customers to exchange cash for China’s central bank digital currency (CBDC), the digital yuan, through its banking app. Customers can also redeem their digital yuan for cash.
- The digital yuan was created by the People’s Bank of China to eventually replace some cash in circulation. It is being trialed across China.
- By offering these exchange services early on, Standard Chartered is positioning itself strategically in case the digital yuan gains widespread adoption in China.
Standard Chartered Bank has announced that it will give customers access to China’s central bank digital currency through its banking app. This will allow customers to exchange the digital yuan for cash and vice versa.
Background on Digital Yuan
The digital yuan, also known as the e-CNY, is China’s central bank digital currency (CBDC). It was created and is issued by the People’s Bank of China. The digital yuan aims to eventually replace some cash in circulation in China. It is currently being trialed in several pilot programs across the country.
Standard Chartered’s Digital Yuan Services
Through Standard Chartered’s banking app, customers will be able to connect to the digital yuan’s platform. This will give them access to the following services:
- Recharging – Customers can exchange cash for digital yuan. The digital currency will be deposited into a digital wallet in their banking app.
- Redemption – Customers can exchange their digital yuan for cash. The currency will be withdrawn from their digital wallet.
- Payments – Customers can use their digital yuan to make payments to merchants accepting the CBDC.
Benefits for Standard Chartered
Offering these services provides benefits for Standard Chartered and its customers:
- It gives customers a new way to access and use the digital yuan as it rolls out across China.
- It helps Standard Chartered be at the forefront of the country’s development of digital currencies.
- It further cements Standard Chartered’s presence in China’s rapidly evolving digital economy.
The service also effectively gives Standard Chartered’s customers access to China’s payments infrastructure. This could be a strategic advantage as the digital yuan expands.
Outlook for Digital Yuan Adoption
China’s central bank is continuing to gradually roll out the digital yuan across the country. It is unclear how widely adopted the CBDC will become in the short term. However, by offering exchange and payment services, Standard Chartered is positioning itself early on should the digital yuan gain significant traction in China.