The international operation centre of the digital yuan has signed direct participant agreements with 26 financial institutions in Shanghai, Reuters reported.

Managed by the People’s Bank of China (PBOC), the centre aims to expand low-cost and efficient cross-border payments. It also seeks to advance global adoption of the Chinese currency.

The agreements allow participants to join the Cross-border e-CNY Transfer Services (Cbets).

This integrated settlement platform supports round-the-clock digital payment links with foreign central banks and overseas financial institutions using the digital yuan, which is China’s central bank digital currency (CBDC).

Standard Chartered Bank (China) confirmed it was one of the first foreign banks to sign and join the Cbets platform.

“Fintech is fundamentally reshaping the underlying logic of cross-border payments and providing new momentum and pathways for them,”

said Jean Lu, CEO, Standard Chartered Bank (China).

Lu added that an efficient, convenient, and compliant cross-border payment experience will further enhance the international use of the renminbi.

The central bank is driving a broad campaign to increase digital yuan usage both at home and abroad.

Industry sources told Reuters that this strategy sets Beijing on a different and potentially competing path from the US in shaping the future of money.

To accelerate this rollout, China granted approval to a dozen additional banks to handle the digital currency in March.

Featured image credit: Edited by Fintech News Hong Kong, based on image by photoraidz via Magnific