HSBC is the first foreign bank to offer services with the digital yuan

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Key Facts: The bank helped a school group make their first digital yuan transaction. The institution allows the digital yuan wallet to be integrated into corporate bank accounts. The Chinese headquarters of the British bank HSBC enabled services with the Asian giant's central bank digital currency (CBDC), the digital yuan, for its corporate clients. This makes that foreign institution the first to offer services for that asset. In a press release, the financial institution explained that its services focus on business clients, allowing them to Link your digital yuan wallets with your bank accounts. This will allow them to manage their CBDC directly in the HSBC China account. As indicated by the banking institution, corporate services for the digital yuan are executed under “close cooperation” with the authorized operator, the Bank of China. That is one of the four entities sponsored by the Central Bank of China that are allowed to operate with that CBDC. In addition to the Bank of China, there are the Industrial and Commercial Bank, the Construction Bank and the Bank of Communications of China. As Zeng Su, general manager of HSBC China's Global Payment Solutions Department, sees it, their goal in offering corporate services for the digital yuan is to “participate in promoting the development of digital finance in China and empowering it.” Thus, aim to provide “relevant support” in commercial payments and cross-border trade settlements in the future. HSBC China, founded in April 2007, indicated that the first transaction with this CBDC was made to the bilingual education group Nord Anglia Education Group, which received digital yuan as payment. According to the bank, which has more than 130 branches in China, “payment was successfully completed” with that CBDC to the educational initiative, “further expanding its payment channels and promoting the construction of smart campuses.” In the opinion of Lin Cheng, deputy director of finance and tax at Nord Anglia Education Group, HSBC China allows us to provide students and parents with “more convenient and diverse payment channels.” “We believe that the continuous improvement of digital yuan infrastructure and the expansion of application scenarios will provide new opportunities for the digital upgrade of our school campus management,” Cheng said. HSBC plans to deepen its cooperation with Chinese regulatory agencies, as well as institutions participating in digital yuan operations, “to improve the reach of CBDC in domestic corporate and retail payments.” The digital yuan is one of the most developed CBDCs so far. Currently, that asset has multiple use cases in China and has served as an example for the creation of that asset. For example, it was recently reported that the Industrial Bank of China enabled an option for CBDC users at that authorized entity can access economic benefits for each transaction carried out with the digital yuan. Now, China's CBDC, as well as any of those that are being developed right now, They are vehicles that lead to social control. This is according to researchers and financial security experts, such as Dovey Wan and Yaya Fanusie, for whom China's CBDC is a tool that encourages crowd control.