BNP Paribas Joins Hands with Bank of China to Promote e-CNY
As per the latest reports, BNP Paribas is collaborating with the Bank of China to introduce a new digital wallet service and interbank wallet applications for e-CNY, the digital currency of the Chinese Yuan.
Under the agreement, both banks will operate together to widen the usage of e-CNY for domestic online, and offline payments. BNP Paribas will initiate its system with the Bank of China, permitting linear processing, which will enable it to facilitate digital wallet functions that cater to the requirements of corporate customers when it comes to payments. To promote global trade, China is to host the Global Trade and Investment Promotion Summit of 2023 in Beijing on May 24.
The declaration also highlights that it will enable BNP Paribas to offer supply chain finance and utility payment services. It will also be utilized for smart contract applications and international payments through the so-called m-CBDC bridge (Central Bank Digital Currency).
BNP Paribas China CEO CG Lai stated, “While this arrangement can aid the bank’s offline payment collection capabilities and further advance our clients’ account structure, this also supported the Bank’s commitment to the China market.”
Louise Zhang, head of BNP Paribas transaction banking stated that the association will help “facilitate advanced, effective cash management and trade financing services to regional and multinational clients.”
The e-CNY is a fiat currency in the digital form issued by the nation’s central bank, the People’s Bank of China (PBoC) that has been piloted in several cities in China.