China Adds 8 Banks To Digital Yuan CBDC Network

China’s central bank has expanded its digital yuan network by adding eight more banks, increasing the number of institutions authorized to operate e-CNY services to 30. According to a Xinhua report published on the Chinese government’s website, the People’s Bank of China (PBOC) added Ping An Bank, Hengfeng Bank, China Bohai Bank, Bank of Shanghai, Bank of Hangzhou, Huishang Bank, Bank of Changsha and Guangxi Beibu Gulf Bank to the network.

The newly added banks will connect to the PBOC’s digital yuan infrastructure and begin providing e-CNY services once they complete the necessary technical and operational preparations.

Digital Yuan operator network expands rapidly

The latest additions follow another expansion in April, when 12 institutions, including several city commercial banks, were added to the list of digital yuan operators. Before this year, only 10 banks were authorized to provide e-CNY services. Industrial Bank had been the most recent addition, joining the network in 2022. The expansion significantly broadens the number of financial institutions able to offer digital yuan services and could help extend adoption beyond China’s largest national banks.

Regional banks could support SMEs and cross-border trade

Dong Ximiao, chief researcher at Merchants Union Consumer Finance, said the newly added institutions could help address service gaps for regional small and medium-sized enterprises, as well as businesses involved in cross-border trade. Regional banks may be particularly well positioned to introduce e-CNY services to customers and businesses outside China’s largest financial centers.

China continues long-term digital Yuan rollout

The PBOC began researching a central bank digital currency in 2014 before launching digital yuan pilot programs in late 2019. Since then, China has gradually expanded the use of e-CNY across merchant payments, public utilities and government services.

The central bank said it plans to continue widening the digital yuan operator network in an effort to increase competition among participating institutions and make e-CNY services accessible to a broader range of users.

Sources:

https://cointelegraph.com/news/china-adds-8-banks-to-digital-yuan-network-as-operator-count-hits-30

https://english.www.gov.cn/news/202608/17/content_WS6a82f788c6d00ca5f9a0ca72.html