French-based bank cooperates with Bank of China to launch e-CNY payment services, heralding a suite of digital wallet services for its mainland corporate clients franchise.
BNP Paribas is collaborating with the Bank of China to launch digital wallet services and interbank wallet applications for e-CNY, the digitalized version of China's yuan, according to an announcement distributed to the media on Thursday.
Under the agreement, both banks will work together to expand the use of e-CNY for domestic online and offline payments. BNP Paribas will connect its system with the Bank of China's, allowing straight-through processing, which will allow it to offer digital wallet functions that meet the needs of corporate clients when it comes to payments.
The announcement also maintained that it will allow BNP Paribas to offer supply chain finance and utility payment services. It will also be used for smart contract applications and cross-border payments through the so-called m-CBDC bridge (Central Bank Digital Currency).
Optimize Client Accounts
«While this collaboration can supplement the Bank’s offline payment collection capabilities and further optimize our clients’ account structure, this also reinforced the Bank’s commitment to the China market,» BNP Paribas China CEO CG Lai indicated in the statement.
Louise Zhang, head of BNP Paribas transaction banking, maintained that the collaboration will help it provide «innovative, efficient cash management and trade financing services to local and multinational clients».
The e-CNY is a fiat currency issued in digital form by the country's central bank, the People's Bank of China (PBoC) that has been piloted in various cities in China.
