China Signs 26 Banks to Digital Yuan, Advances mBridge Rollout

China's digital yuan is making significant strides in its international expansion. The country has signed agreements with 26 financial institutions to join the Cross-Border e-CNY Transfer Services (CBETS), a platform that enables low-cost and efficient cross-border payments.

The CBETS platform supports 24/7 digital payment links to foreign central banks and overseas financial institutions, including Standard Chartered Bank (China), which will be one of the first foreign banks to join. Jean Lu, CEO of Standard Chartered Bank (China), emphasized the importance of efficient cross-border payments in promoting the international use of the yuan.

China's central bank is aiming to increase the global use of digital yuan and reduce reliance on the US dollar. This move comes as Beijing seeks to shape the future of money and potentially compete with the US. The country has already approved 12 banks to handle its digital yuan, with a focus on promoting its domestic use.

In related news, China is advancing the commercial rollout of its mBridge platform, which aims to boost cross-border transactions and reduce fees compared to conventional international payment systems. The mBridge platform uses blockchain technology to enable transactions between central banks using their own digital currencies.