BNP Paribas to promote CBDC use by linking digital yuan to bank accounts - report

BNP Paribas ( OTCQX:BNPQY ) ( OTCQX:BNPQF ) ( OTCPK:BNPZY ), in partnership with the Bank of China, is promoting the use of China's central bank digital currency by linking digital yuan wallets to bank accounts, according to a Friday report by the South China Morning Post that cited a statement. Corporate clients of the French bank will be able to connect to the digital yuan via a connection with the BOC's system to enable real-time use of the CBDC. Furthermore, BNP Paribas China ( OTCQX:BNPQY ) said it will explore expanding the use of China's CBDC for smart contracts, supply chain finance and for utility and cross-border payments, the article said. The testing phase of the central bank-issued digital yuan, also known as e-CNY, started in 2020 and was designed to digitize the country's banknotes and coins for cashless payments. This is not BNP's ( OTCQX:BNPQY ) first foray into the decentralized space. In July 2022, it reportedly teamed up with crypto custody firm Metaco, which provides crypto custody solutions for banks and institutions. It then was said to have tapped JPMorgan's ( JPM ) blockchain-powered network for short-term trading in fixed income markets. The collaboration with the BOC "demonstrates our commitment to the China market, and we will continue to enhance our customer service capabilities through digital innovation and contribute to China’s economic development,” BNP Paribas China CEO CG Lai said in the statement, as quoted by SCMP . More on BNP Paribas BNP Paribas: Buyback Will Unlock Shareholder Value BNP Paribas: Chasing Another Record Year In 2023