The Chinese digital yuan project is making significant strides, now accepted in 26 cities and 17 provinces across the country. On June 7, the Sino-British banking giant HSBC announced the launch of a digital yuan (RMB) service for its corporate clients, marking it as the first major non-Chinese bank to offer digital RMB (or e-CNY) services to both businesses and individuals.

In a statement, HSBC revealed that it has been working closely with the People’s Bank of China, the country's central bank and the operator of the digital RMB. 'In close collaboration with the People’s Bank of China, HSBC China is expanding its services to the corporate sector by launching a counterpart wallet service in digital RMB for its corporate clients,' the bank stated.

With this new service, businesses can manage their digital yuan portfolios by linking them to their bank accounts, allowing for the automatic deposit of digital yuans.

HSBC aims to support China in the development of the digital yuan by enhancing its collaboration with RMB digital developers to 'increase its reach to the general public.' The bank also plans to participate in pilot projects for the digital RMB’s development 'in cross-border areas,' where it seeks to play a significant role 'in cross-border trade, exchanges, and the internationalization of the RMB.'

Last July, the Chinese bank DBS introduced a solution enabling its clients to conduct transactions using e-CNY. The digital yuan is already widely accepted in multiple regions within China. For Chinese authorities, the launch of a digital currency is a strategic move to maintain control over digital assets amidst the rise of cryptocurrencies and to gain an edge over the dollar.

HSBC's Collaboration with People's Bank of China

'In close collaboration with the People’s Bank of China, HSBC China is expanding its services to the corporate sector by launching a counterpart wallet service in digital RMB for its corporate clients.'

HSBC