BNP Paribas, BOC promote digital yuan usage

The South China Morning Post reported that the French bank BNP Paribas is collaborating with the Bank of China (BOC) to promote China’s digital currency, the digital yuan, to its corporate clients.

The partnership will allow BNP Paribas China’s corporate clients to connect with the BOC system, enabling users to manage their digital yuan wallets by linking them to their bank accounts, monitor transactions, and make payments using China’s digital currency through an e-CNY management system.

The management system also promises to make the use of digital currency for real-time transactions simpler and more convenient for customers.

The digital yuan administration system can facilitate “efficient, real-time, and convenient [digital cash] practice,” according to BNP and The South China Morning Post.

BNP Paribas  China also intends to investigate the use of China’s central bank digital currency (CBDC) in other areas, including smart contracts, supply chain finance, utility payments, and cross-border transactions.

China distributed millions of dollars’ worth of digital yuan across the country during the Lunar New Year holiday to promote the adoption of its CBDC.

According to reports, a number of cities gave away over 180 million yuan, or $26.5 million worth, of CBDCs through programs such as subsidies and consumption vouchers.

Local news outlets reported in April that the Chinese city of Changshu informed all of its civil servants that their complete salaries would be paid in digital yuan beginning in May 2023.

The payment terms are applicable to all city government employees and other state-owned entities.

Hong Kong residents have not shown much enthusiasm for the Chinese government’s efforts to promote the adoption of its CBDC, despite its efforts to promote the digital yuan.

During the first four days of the digital yuan wallet’s hard launch, only 625 residents registered, indicating a lackluster response to the new digital currency offering.