According to The Block, HSBC’s China branch has started providing digital Renminbi (eCNY) services to corporate clients, becoming the first foreign bank in China to offer services related to central bank digital currency to retail and corporate clients.
HSBC (China) Limited stated that its corporate clients can now link their corporate bank accounts to digital Renminbi accounts to manage assets and make payments using digital Renminbi at six branches in Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou.
e-CNY, also known as digital Renminbi, is a digital currency issued by the People’s Bank of China. It is a digital version of the Renminbi (CNY) aimed at replacing some of the circulating cash.
China’s People’s Bank of China Digital Currency Research Institute director Mu Changchun previously stated that payment tools used in wholesale payment scenarios also need to be upgraded. Instead of replacing existing systems and resources with the central bank’s digital currency system, seamless integration can be achieved by enabling full interoperability between digital Renminbi and commercial bank deposits.
Digital payments in China have a wide range of applications, from street vendors, snack shops to even tipping beggars, all of which can be done through payment platforms like WeChat and Alipay. Using cash for purchases can even lead to situations where businesses have no change to provide.
In March, the People’s Bank of China launched the overseas version of the digital Renminbi App (e-CNY App), allowing users from over 210 countries and regions worldwide to easily register and open their own digital wallets. Opening this wallet does not require having any local Chinese bank account; Visa and MasterCard can be used for “top-up on demand.”
Director Mu Changchun of the People’s Bank of China Digital Currency Research Institute stated at the “2023 China International Financial Annual Forum” that the goal is to make digital Renminbi a payment tool for all retail scenarios.
Mu Changchun mentioned that wallet providers like third-party payment institutions such as WeChat and Alipay need to have compliance awareness, obtain relevant financial licenses, adhere to regulations, and achieve seamless integration by fully interoperating with existing electronic payment tools and commercial bank deposits.