The banking group includes branches of Chinese banks in countries such as Brazil, Qatar, Thailand, Hong Kong, and Macau.
China, the world's second-largest economy, is accelerating the adoption of the digital yuan (e-CNY) for cross-border payments. According to the South China Morning Post , 26 domestic and foreign banks joined the platform this week.
Although it doesn't reveal the names involved, the text states that banks operating in Brazil are participating in the program. Other countries mentioned are Qatar and Thailand.
Since China and Brazil are part of BRICS and are major trading partners, it is possible that the Chinese digital currency has a strong use case.
China shows progress with the digital yuan as 26 local and foreign banks participate.
Central Bank Digital Currencies (CBDCs) have become a global topic. In Brazil, for example, the Central Bank of Brazil (BCB) is trying to launch DREX , which is still in the proof-of-concept phase.
China is already one of the leaders in this race with the digital yuan (e-CNY) in its pilot phase. As an example, back in January 2022, the e-CNY wallet was already the most downloaded app in the country .
Almost all countries are studying the creation of a CBDC. China appears to be one of the most advanced countries in this regard. Source: CBDC Tracker/Reproduction.
This week, China demonstrated further progress with the integration of 26 banks into its digital yuan cross-border payment platform, also known as e-CNY Cross-Border Transfer Services (CBETS).
One of the highlights is that this group of banks includes branches of Chinese banks in countries such as Brazil, Qatar, Thailand, Hong Kong and Macau, as well as local financial institutions. The participants held a ceremony last Tuesday (16) in Shanghai.
Given that Brazil is the only BRICS country on this initial list, it is possible that the use of the Chinese digital currency will gain traction in trade between the two countries.
Since CBETS is managed by the People's Bank of China, the solution reduces dependence on traditional intermediaries, potentially offering faster and cheaper transactions.
Above all, the increasing adoption of the digital yuan by other countries could also pose a threat to the US dollar, which remains dominant in international trade.
“Participants in CBETS can leverage the platform’s capabilities to offer low-cost, diversified, and secure cross-border digital payment services to customers, supporting trade and investment facilitation and China’s broader push for high-level financial opening ,” said the Industrial and Commercial Bank of China.
Finally, another highlight of the text is the participation of a Chinese subsidiary of Standard Chartered, a British bank operating in more than 70 countries, with a strong presence in Asia, Africa, and the Middle East.
