Nine more banks have joined China’s digital yuan pilot, bringing the total number of banks offering CBDC wallets to 60. The latest batch of commercial banks includes both big city-based banks and rural banks.
City-based banks joining the pilot this month:
- Bank 1
- Bank 2
- Bank 3
Rural banks joining the pilot this month:
- Bank 4
- Bank 5
- Bank 6
The initial pilot phase began with four banks, namely the Bank of China, the Industrial & Commercial Bank of China, the China Construction Bank, and the Agricultural Bank of China. These banks joined the central People’s Bank of China (PBoC) and are now designated operators for the digital yuan.
In addition to the four megabanks, eight joint-stock banks, 20 city-based commercial banks, 14 rural commercial banks, five rural credit providers, and four foreign banks, including HSBC and Standard Chartered, have also joined the pilot.
These banks offer various digital yuan-related services, including personal and corporate wallets. Notably, popular e-payment platforms such as Alibaba’s Alipay and Tencent’s WeChat Pay are also participating in the pilot, further enhancing the success of the PBoC’s initiative.
According to Chinese fintech expert Su Xiaorui, the “next phase of the digital yuan pilot” will witness an expansion of its usage to “people and enterprises in more regions.” Currently, the pilot zone covers Beijing, China’s major tech hubs, and major cities. However, the majority of the country is yet to experience the use of digital yuan, as the PBoC has not provided a specific rollout date for nationwide implementation.
Su predicts that in 2024, the PBoC and its partners will increase the utilization of the CBDC in government operations and cross-border scenarios. Cross-border expansion of the digital yuan started in Hong Kong and has now extended to Singapore and Taiwan.
Chinese banks are expected to make further progress in digital yuan-related retail and corporate services in 2024.
“The next phase of the digital yuan pilot will see people and enterprises in more regions making use of the coin.” – Su Xiaorui
