The Central Bank of China onboarded 26 domestic and foreign institutions to its Cross-border e-CNY Transfer Services (CBETS) platform on Tuesday, enabling digital yuan use for cross-border settlements. The expansion includes Chinese bank branches located in Brazil, Qatar, Thailand, Hong Kong, and Macau. The move aims to boost international adoption of China's central bank digital currency (CBDC) and provide institutions an alternative to traditional payment systems amid compliance issues and secondary sanctions concerns. In April, the yuan dropped to sixth place in global payments on SWIFT, transacting 2.85% of registered volume, driving China's push for yuan-based payment rails outside the SWIFT network.
Central Bank of China Expands CBETS Platform With 26 Institutions
According to local reports, the 26 institutions added on Tuesday are Chinese bank branches located in Brazil, Qatar, Thailand, Hong Kong, and Macau, China. These institutions will now be part of CBETS, China's Cross-border e-CNY Transfer Services, a platform that enables the use of the digital yuan for cross-border settlements.
![Infographic on the Internationalization of the Digital Yuan]()
Standard Chartered China and ICBC Join Digital Yuan Network
Lu Jing, CEO of Standard Chartered China, which was included in the network, stated that "an efficient, convenient and compliant cross-border payment experience will further enhance the international use of yuan."
Industrial and Commercial Bank of China said that CBETS participants "can leverage the platform's capabilities to offer clients low-cost, diversified and secure cross-border digital payment services, supporting the facilitation of trade and investment and China's broader push for high-level financial opening up."
Mbridge Records $55 Billion in Volume by January
Reports indicate that Mbridge, a platform that offers digital yuan settlement services, registered over $55 billion in volume by January. 95% of this volume was transacted in digital yuan, even though the platform is designed to support other CBDCs such as the digital dirham.
This move opens another path for institutions dealing with Chinese counterparts to skip the traditional payment system, which can be marred by compliance issues and secondary sanctions, and step into a yuan-based payment rail.
Yuan Drops to 2.85% on SWIFT in April
In April, the yuan dropped to sixth place in global payments on SWIFT, transacting 2.85% of the registered volume. This decline in traditional benchmark networks appears to be driving Chinese institutions toward alternative payment rails such as CBETS and Mbridge.
FAQ
What did the Central Bank of China do on Tuesday?
The Central Bank of China onboarded 26 domestic and foreign institutions to its Cross-border e-CNY Transfer Services (CBETS) platform on Tuesday, enabling these institutions to use the digital yuan for cross-border settlements.
How much volume did Mbridge record by January?
Mbridge registered over $55 billion in volume by January, with 95% of this volume transacted in digital yuan, even though the platform is designed to support other central bank digital currencies such as the digital dirham.
What was the yuan's share on SWIFT in April?
In April, the yuan dropped to sixth place in global payments on SWIFT, transacting 2.85% of the registered volume, down from higher levels in previous periods.
