HSBC China Launches Digital RMB Services for Corporate Clients as eCNY Promotion Expands
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 both retail and corporate customers.
HSBC (China) Limited stated that its corporate clients can now link their corporate bank accounts to digital renminbi accounts to manage assets, and provide six branches in Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou to use digital renminbi for payments.
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.
The Director of the Digital Currency Research Institute of the People’s Bank of China, Mu Changchun, 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, but through achieving full interoperability between digital renminbi and commercial bank deposits to seamlessly connect.
Digital payments in China have a wide range of applications, from street vendors, snacks, and even tipping beggars, all of which can be done through payment platforms like WeChat, Alipay, etc. Using cash for consumption can even lead to situations where businesses have no change to give back.
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 having any local Chinese bank account, and it can be topped up using Visa, MasterCard, etc.
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 make digital renminbi the payment tool for all retail scenarios.
Mu Changchun mentioned that wallet providers like WeChat, Alipay, and other third-party payment institutions’ apps need to have compliance awareness, obtain relevant financial licenses, comply with regulations, and achieve seamless interoperability with existing electronic payment tools and commercial bank deposits.
e-CNY
HSBC
Digital renminbi
