HSBC China has taken a pioneering step by becoming the first foreign bank in the country to offer e-CNY services to both corporate and retail clients.

This development marks a significant shift in the adoption of China’s central bank digital currency (CBDC).The new service allows businesses to connect their traditional bank accounts with digital yuan accounts, streamlining asset management.

Initially launched as a retail payment system in major cities, e-CNY is now venturing into the corporate sector.

HSBC partnered with Nord Anglia Education Group to demonstrate the functionality of e-CNY in corporate transactions.

Schools across Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou successfully implemented e-CNY payments, paving the way for wider adoption.

The low cost, instant settlements, and automatic conversion features offered by HSBC are seen as major advantages for businesses looking to improve efficiency and reduce costs.

Meanwhile, Hong Kong recently opened doors for residents to establish e-CNY wallets, potentially facilitating cross-border transactions and encouraging broader use of the digital yuan.