The cross-border application scenarios of digital renminbi are constantly expanding.
Recently, China Guangfa Bank announced that it has successfully completed the bank’s first cross-border remittance business under the multilateral central bank digital currency bridge (mBridge) (hereinafter referred to as “currency bridge”) under the agency model. This marks that the bank officially relies on the currency bridge business to provide enterprises with more efficient and lower-cost cross-border payment services that can be “received in seconds” and inject new vitality into the enterprise’s cross-border trade business.
It is understood that the “Currency Bridge” business is the world’s first multinational central bank digital currency interconnection project jointly launched by the People’s Bank of China, the Hong Kong Monetary Authority, the Central Bank of Thailand, and the Central Bank of the United Arab Emirates.
It uses blockchain and distributed ledger technology to realize point-to-point transactions, significantly simplifying intermediary links, reducing transaction costs, and providing customers with safe, efficient, and low-cost cross-border financial service solutions.
The implementation of this business of China Guangfa Bank is an important practice in the field of digital renminbi cross-border payment in the bank’s active response to the requirements of the “Action Plan on Further Strengthening the Construction of Digital RMB Management Service System and Related Financial Infrastructure”.
This marks a key step for the bank in reshaping its cross-border business model and adapting to new cross-border payment infrastructure, and has accumulated valuable experience for subsequent deepening of innovation.
Under the guidance of the country’s new “dual circulation” development pattern and high-level financial openness policies, Currency Bridge, as the “infrastructure” for digital RMB cross-border payments, is reconstructing the cross-border payment industry chain through technological innovation.
It promotes the transformation of banks from “traditional payment intermediaries” to “comprehensive financial service providers” and builds technical support for the internationalization of the RMB.
In recent years, China Guangfa Bank has unswervingly followed the path of financial development with Chinese characteristics and continued to strengthen its cross-border financial service capabilities.
Innovatively launched Cross-border Wealth Management Connect 2.0 to upgrade cross-border wealth management services in the Greater Bay Area; enriched the CIPS product line to facilitate the construction of an independent and controllable cross-border payment system; launched the cross-border payment service as one of the first promotion agencies to realize real-time receipt and payment of cross-border funds; optimized the global agency bank network and built a service system covering domestic and overseas markets.
The implementation of the Currency Bridge business has extended cross-border financial services from traditional scenarios to the digital RMB innovation field, adding new momentum to serve the cross-border development of the real economy.
In the next step, China Guangfa Bank will seize the window period for the development of digital renminbi. Under the unified deployment and careful guidance of the People’s Bank of China, it will give full play to the advantages of its headquarters and institutional network in the Guangdong-Hong Kong-Macao Greater Bay Area, and continue to make efforts in technology implementation and scenario innovation.
Effectively meet the two-way needs of enterprises to “go global” and “bring in” financial resources, and contribute to the steady expansion of high-level opening up of cross-border trade and investment and the service of the RMB internationalization strategy.
As the cross-border application of digital renminbi continues to advance, we have reason to believe that cross-border payments will become more convenient and efficient in the future, injecting new vitality into global trade and economic development.
