Using an e-CNY management system, BNP Paribas China’s corporate clients will be able to manage their digital yuan wallets, keep track of transactions, and send and receive payments in the form of digital currency thanks to the collaboration.
China’s efforts to promote the usage of its central bank digital currency (CBDC) and broaden its use cases outside of the nation’s borders are consistent with the action.
According to BNP Paribas, the alliance would make it easier to conduct “efficient, real-time, and convenient” digital cash transactions. Users can connect their digital yuan wallets to their bank accounts using the e-CNY management system, making it simpler to use digital money for in-the-moment transactions.
The usage of the digital yuan in other domains, including smart contracts, supply chain finance, utility, and cross-border payments, is something that BNP Paribas China intends to investigate.
With cross-border transactions frequently being slower and more expensive, China wants to promote the digital yuan as a potential substitute for conventional payment systems.
An important milestone in China’s efforts to increase the use of its CBDC is the agreement between BNP Paribas and the Bank of China to promote the digital yuan.
China wants to make the digital yuan a competitive alternative to conventional payment methods in international trade by working with foreign banks.
It remains to be seen if the Changshu civil officials’ decision to get their paychecks in digital yuan would result in a wider acceptance of the digital currency, even though it is a move in that direction.