China Advances Digital Yuan Game with 26 Bank Partnerships

China has made significant strides in its digital currency game by signing agreements with 26 financial institutions to participate in the digital yuan cross-border payment platform. The People's Bank of China (PBOC) established the international operation center, and these agreements will allow participants to join the Cross-Border e-CNY Transfer Services (CBETS), a platform that supports 24/7 digital payment links to foreign central banks and overseas financial institutions.

Standard Chartered Bank (China) is one of the first foreign banks to sign up with CBETs, with CEO Jean Lu stating that fintech has fundamentally reshaped cross-border payments. This development aims to increase the use of digital yuan domestically and internationally, as China's central bank seeks to promote its currency globally.

The country also approved 12 banks to handle its digital yuan in March, promoting the use of the digital currency. China is progressing with the commercial rollout of the mBridge digital currency program, which would boost cross-border transactions, reduce reliance on the US dollar, and draw Beijing closer to its 'Belt and Road' trading partners.

The mBridge platform uses blockchain technology to enable transactions between central banks using their own digital currencies. To date, it has processed about RMB 470 billion ($69 billion) in transactions.