BNP Paribas is teaming up with the Bank of China (BOC) to promote China's digital currency, the digital yuan, to its corporate clients, according to the South China Morning Post.
The partnership will enable corporate clients of BNP Paribas in China to connect to the Chinese banking system, allowing users to manage their digital renminbi wallets by linking them to their bank accounts, track transactions and use them through the electronic renminbi management system Ch inese digital currency for payment. The management system also promises to make it easier and more convenient for customers to use digital cash for real-time transactions.
According to the South China Morning Post, BNP said the digital yuan management system could facilitate “efficient, real-time and convenient [digital cash] practices.” BNP Paribas China also plans to explore the use of China's central bank digital currency (CBDC) in other areas such as smart contracts, supply chain finance, utilities and cross-border payments. To boost the adoption of its CBDC, China distributed millions of dollars worth of digital yuan across the country during the Lunar New Year. Some cities have re portedly donated more than 180 million yuan in subsidies and vouchers, a total of $26.5 million worth of CBDC.
In April, local news reports said that the Chinese city of Changshu informed all civil servants in its jurisdiction that they would be paid their full salaries in digital yuan starting in May 2023. Terms of payment apply to all civil servants of the Public Service and other state affiliated units within the city.
Despite the Chinese government's efforts to promote the digital yuan, Hong Kong residents have not shown much enthusiasm for the government's efforts to promote the adoption of its CBDC. In the first four days of the hard launch of the digital yuan wallet, only 625 res identities registered, indicating lukewarm response to the new digital currency offering.
