The international banking giants HSBC and Hang Seng Bank have officially joined China’s digital yuan pilot program, according to a report by 21st Century Business Herald. This marks a significant step in the adoption of digital currency in the global financial sector.
Foreign Banks Embrace Digital Yuan
A group of “four foreign banks” including HSBC, Hang Seng Bank, Fubon Bank (China), and Standard Chartered (China) have formally announced their participation in the digital yuan pilot program. This move demonstrates their commitment to exploring the potential of China’s central bank digital currency (CBDC).
“HSBC’s Chinese arm confirmed its participation in the CBDC pilot on its social media channels.”
Hang Seng Bank (China) has also confirmed its involvement in the pilot program. Shanghai Securities News reported that HSBC China customers can now use their debit cards to access personal digital yuan wallet services and top up their digital RMB wallets.
“The group of four banks is the first batch of foreign banks to participate in the digital yuan pilot, hinting at the possibility of more overseas financial institutions joining in the near future.”
The digital yuan app interface now prominently displays the logos of the four banks, as shared by media outlets.
Standard Chartered Bank’s Interconnection
Standard Chartered Bank, with its Mainland China arm, has accessed the digital yuan interconnection platform, stated by RTHK. The bank has begun providing its customers with digital yuan exchange services using the platform overseen by the People’s Bank of China.
“Both HSBC and Hang Seng have been actively embracing CBDC adoption, not only in Hong Kong but also internationally.”
This comes after HSBC and Hang Seng Bank’s involvement in a Hong Kong Monetary Authority-led CBDC pilot program, which Visa recently announced as completed. Moreover, HSBC’s partial ownership of the Bank of Communications enables the collaboration on a digital yuan-powered recycling rewards program in mainland China.
