eCNY fully launched, HSBC China introduces digital RMB services for corporate clients

According to a report by The Block, HSBC's China branch has started offering digital renminbi (eCNY) services to corporate clients, becoming the first foreign bank in China to provide services related to central bank digital currency to retail and corporate clients.

Full-scale Promotion of Digital RMB

HSBC China announced that its corporate clients can now link their corporate bank accounts with digital RMB accounts to manage assets, and provide digital RMB payment services at six branches in Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou.

e-CNY, also known as the Digital RMB, is a digital currency issued by the People's Bank of China. It is a digital version of the Chinese Yuan (CNY) designed to replace some of the circulating cash.

Mu Changchun, director of the Digital Currency Research Institute of the People's Bank of China, previously stated that the payment tools used in wholesale payment scenarios also need to be upgraded. To avoid wasting existing systems and resources, there is no need to replace them with the central bank's digital currency system. Instead, seamless connectivity can be achieved by fully integrating digital RMB with commercial bank deposits.

Wide Adoption of Retail Applications for Digital RMB

Digital payments are widely used in China, from street vendors, snacks, to even tipping beggars, all can be paid through payment platforms like WeChat and Alipay, where using cash may lead to the awkward situation of merchants not having change.

In March, the People's Bank of China launched the overseas version of the e-CNY App, allowing users from more than 210 countries and regions worldwide to easily register and open their digital wallets. Opening this wallet does not require owning any local Chinese bank account, as it can be "topped up as needed" using Visa or MasterCard.

China opens the door to digital payments: Foreign tourists can easily spend using digital RMB

Mu Changchun, director of the Digital Currency Research Institute of the People's Bank of China, stated at the "2023 China International Financial Annual Forum" that the goal is to use digital RMB as a payment tool in all retail scenarios.

Mu Changchun mentioned that wallet providers such as third-party payment institutions like WeChat, Alipay, etc., need to have compliance awareness, obtain corresponding financial licenses, comply with regulations, and achieve seamless integration by fully connecting with existing electronic payment tools and commercial bank deposits.

China's central bank Mu Changchun: Digital RMB as a payment tool in all retail scenarios