Chinese Banks, Ant International Trial Instant Cross-Border Digital Yuan Transfers
SCMP · 1 SOURCESabout 3 hours ago2 MIN
Summary
Two major Chinese state-owned banks have partnered with Ant International to successfully trial instant cross-border digital yuan transfers worth hundreds of millions of yuan. The trials involved transfers from Shanghai to Hong Kong subsidiaries, completing transactions in seconds rather than the several days typically required for large-value cross-border payments through traditional channels. This development marks a significant step forward in Beijing's efforts to promote wider international use of the digital yuan and streamline cross-border settlements.
Key Points
- ICBC's Shanghai branch facilitated its first digital yuan transfer for Ant International to ICBC Asia in Hong Kong, completing the cross-border transaction within seconds
- CCB's Shanghai branch also facilitated a digital yuan transfer worth hundreds of millions of yuan for Ant International to CCB Asia, the bank's Hong Kong subsidiary
- Ant International is the Singapore-based arm of Ant Group, an affiliate of Alibaba, which owns the South China Morning Post
- Traditional large-value cross-border transfers typically require several days, while these digital yuan transfers were completed almost instantly
- The initiative explores how state-owned banks and fintech companies can work together to expand digital yuan use in cross-border transactions
Why It Matters
The trials demonstrate how the digital yuan could revolutionize cross-border payments by dramatically reducing transaction times and costs for businesses with international operations. This development aligns with Project mBridge, China's multilateral central bank digital currency platform, as Beijing seeks to increase the international use of its digital currency amid growing global competition in digital payment systems .
The trials demonstrate how the digital yuan could revolutionize cross-border payments by dramatically reducing transaction times and costs for businesses with international operations. This development aligns with Project mBridge, China's multilateral central bank digital currency platform, as Beijing seeks to increase the international use of its digital currency amid growing global competition in digital payment systems .