The 26 institutions are Chinese bank branches located in Brazil, Qatar, Thailand, Hong Kong, and Macau, plus China’s branch of Standard Chartered, and will join PBOC’s Cross-border e-CNY Transfer Services (CBETS). The move seeks to increase adoption of the digital yuan’s institutional cross-border payments.
Key Takeaways:
Central Bank of China added 26 banks to CBETS on Tuesday to boost cross-border digital yuan adoption.Mbridge hit $55B in volume by January, with 95% in digital yuan, aiming to challenge SWIFT’s market share.In April, the yuan dropped to 2.85% on SWIFT, as firms seek alternatives to avoid market sanctions.China is doubling down on its digital yuan internationalization push, including global institutions in its cross-border payment network.
These 26 institutions are Chinese bank branches located in Brazil, Qatar, Thailand, Hong Kong, and Macau, China, and will now be part of CBETS, China’s Cross-border e-CNY Transfer Services.
Lu Jing, CEO of Standard Chartered China, which was also included in the network, highlighted the relevance of this milestone, stressing that “an efficient, convenient and compliant cross-border payment experience will further enhance the international use of yuan.”
This move opens yet another path for institutions dealing with Chinese counterparts to skip the traditional payment system, which can be marred by compliance issues and secondary sanctions, and step into a reliable, yuan-based payment rail.
