Recently, Industrial Bank Changsha Branch has achieved remarkable results in the field of digital renminbi cross-border payments.
The bank successfully handled a multilateral central bank digital currency bridge cross-border payment business worth RMB 270 million for a key foreign trade enterprise in Hunan.
The successful implementation of this business is not only the currency bridge cross-border payment business with the largest single amount so far in Hunan Province, but also marks a solid and crucial step taken by Hunan in promoting digital renminbi to empower the real economy and improve cross-border settlement efficiency.
The Multilateral Central Bank Digital Currency Bridge project is jointly initiated by the Digital Currency Research Institute of the People’s Bank of China, the Innovation Center of the Bank for International Settlements (Hong Kong), the Central Bank of Thailand, the Central Bank of the United Arab Emirates, and the Hong Kong Monetary Authority.
Its goal is to build a new cross-border payment system with central bank digital currency as the core.
Unlike the traditional large-amount cross-border payment model that relies on agent banks and has problems such as long processes and slow arrival, Currency Bridge has significant features such as point-to-point transactions, real-time arrival, and controllable costs.
These features effectively shorten the transaction chain, reduce clearing costs, and greatly improve the efficiency of corporate capital use.
The relevant person in charge of Changsha Branch of Industrial Bank said: “The traditional model often involves multiple intermediary banks, with many links and extended time. Currency Bridge allows funds to be directly transferred to the counterparty’s account, greatly improving efficiency.” The smooth implementation of this 270 million yuan business fully verified the reliability and stability of Currency Bridge in large-amount cross-border payment scenarios.
The development of digital RMB cross-border payment business is of great significance to Hunan’s export-oriented economy.
With the continuous advancement of global economic integration, cross-border trade and investment have become increasingly frequent, and efficient and convenient cross-border payment and settlement methods have become an urgent need for enterprises.
The 270 million yuan currency bridge cross-border payment business successfully handled by Industrial Bank Changsha Branch has provided Hunan’s foreign trade companies with a more high-quality and efficient cross-border payment solution.
In the next step, Industrial Bank Changsha Branch will continue to delve into the construction of digital renminbi scenarios under the guidance of the Hunan Branch of the People’s Bank of China.
On the one hand, it continues to expand cross-border payment and settlement channels to provide enterprises with more diversified payment options; on the other hand, it promotes the high-quality development of Hunan’s export-oriented economy with high-quality financial services.
Through continuous innovation and optimization of financial services, Industrial Bank Changsha Branch will contribute to high-level financial opening up and help Hunan show greater vitality and competitiveness on the global economic stage.
