Chinese lenders test rapid digital-yuan transfer to Hong Kong
Industrial and Commercial Bank of China and Ant International have trialled cross-border transfers using the digital yuan, according to the South China Morning Post. The test involved hundreds of millions of yuan and connected ICBC’s Shanghai branch with its Hong Kong subsidiary, as Beijing seeks smoother international settlement.
Two Chinese state-owned banks and Ant International have trialled cross-border transfers involving hundreds of millions of yuan through China’s digital currency, according to the South China Morning Post. The trial is part of Beijing’s effort to streamline settlement and encourage wider international use of the digital yuan. The material does not identify the other state-owned bank involved.
Industrial and Commercial Bank of China’s Shanghai branch facilitated its first digital-yuan transfer for Ant International to ICBC Asia, the bank’s Hong Kong subsidiary. The transfer moved from Shanghai to Hong Kong and was completed, although the supplied material does not provide further details about the transaction. The trial highlights efforts by Chinese financial institutions and companies to use the digital yuan for cross-border payments.
The source describes the development as the latest step in attempts to make international settlement more efficient and broaden the currency’s use beyond mainland China.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.