Cryptocurrency

Yuan

Base

Billion

Gains

<ul class="list-ic vertical"> 
 <li> 1 <a>HSBC China, a financial service provider launched e-CNY Services (digital Yuan) Monday.</a> </li> 
 <li> 2 <a>Adopting tokenization, the bank permits investors to buy gold via digital tokens.</a> </li> 
 <li> 3 <a>Branches including Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou would deal with e-CNY Services.</a> </li> 
</ul> 
On June 10, HSBC China became the first foreign bank to offer electronic Chinese Yuan (e-CNY) Services or digital Yuan services. This will help customers to avail services linked to the central bank digital currency (CBDC), which will replace a portion of the cash in circulation. 
<h2 class="wp-block-heading" id="strong-hsbc-s-user-base-for-the-e-cny-services-strong">HSBC’s User Base For The e-CNY Services?</h2> 
At a time when the financial ecosystem is evolving, HSBC China has begun offering e-CNY Services to corporate clients including retail and corporate customers. Issued by the People’s Bank of China, digital Yuan would be used for payments in different branches including Shanghai, Beijing, Guangzhou, Jiaxing, and Suzhou. 
<center>
 <blockquote class="twitter-tweet">
 HSBC CHINA BECOMES FIRST BANK TO OFFER DIGITAL YUAN SERVICES FOR CORPORATE CLIENTS – HSBC Bank's China entity has launched Digital Yuan or e-CNY services for corporate clients. – This makes HSBC the first foreign bank in China to offer services linked to the central bank… <a href="https://t.co/xgXkTUErQe">https://t.co/xgXkTUErQe</a> <a href="https://t.co/FY3yyk0Qbx">pic.twitter.com/FY3yyk0Qbx</a>— BSCN (@BSCNews) <a href="https://twitter.com/BSCNews/status/1800076540476019130?ref_src=twsrc%5Etfw">June 10, 2024</a>
 </blockquote> 
 <script async src="https://platform.twitter.com/widgets.js" charset="utf-8"></script>
</center> 
e-CNY is a digital form of China’s national currency Yuan (the Renminbi or RMB), it plays a vital role in preventing financial scams, and other illicit activities. It also improves the efficiency of the central bank payment system. 
On June 7, the bank announced that clients could link their bank accounts with digital Yuan accounts for asset management. Moreover, HSBC’s expansion showcases that foreign banks are focusing on the digital renminbi (RMB). The personal digital RMB service was launched in China in Movember 2023 after which HSBC China deployed it. 
<h3 class="wp-block-heading" id="strong-hsbc-s-tokenized-securities-storage-service-strong">HSBC’s Tokenized Securities Storage Service&nbsp;</h3> 
In November 2023, the bank announced the launching of custody services for tokenized securities and digital asset storage. After BNY Mellon, a US financial institution, HSBC is the biggest bank to adopt digital asset custody. 
To make the services effective, the foreign bank used technology from Metaco, a Swiss <a href="https://www.thecoinrepublic.com/2024/05/04/paypal-users-can-now-purchase-cryptocurrency-using-moonpay/" target="_blank" rel="noreferrer noopener">cryptocurrency</a> custody firm acquired by Ripple blockchain. Moreover, blockchain will be used as a shared ledger for digital asset documentation. 
Further, the blockchain application by HSBC wasn’t the same as those of Bitcoin (BTC) and other cryptocurrencies. At press time, BTC was hovering at $69,413.21, after a 0.11% intraday surge. 
The bank would use the blockchain for payments, trading, and other motives without any involvement of cryptocurrencies. 
<h3 class="wp-block-heading" id="strong-china-s-cryptocurrency-gains-strong">China’s Cryptocurrency Gains</h3> 
Despite a ban on cryptocurrency payments and the blocking of initial coin offerings (ICOs), China is slowly shifting towards a fintech ecosystem. 
Chinese media reported that a survey revealed that investors based in Mainland China minted more than $1 Billion in crypto investments in 2023 amid a strict ban on crypto payments imposed in 2021. 
<div class="wp-block-image"> 
 <figure class="aligncenter size-full">
 <img loading="lazy" decoding="async" width="667" height="741" src="https://www.thecoinrepublic.com/wp-content/uploads/2024/06/image-118.png" alt="" class="wp-image-208372" srcset="https://www.thecoinrepublic.com/wp-content/uploads/2024/06/image-118.png 667w, https://www.thecoinrepublic.com/wp-content/uploads/2024/06/image-118-270x300.png 270w" sizes="(max-width: 667px) 100vw, 667px">
 </figure>
</div> 
China Estimated Cryptocurrency Gains 2023 I Source: Chainalysis&nbsp; 
Between July 2022 and June 2023, traders and investors in China received a net $86 Billion in cash from digital asset activities, as per Chainalysis. The value is significantly higher than Hong Kong’s $64 Billion indicating the attraction of Chinese markets towards blockchain and cryptocurrencies. 
<h4 class="wp-block-heading">Disclaimer</h4> 
The analysis given above is for informational and educational purposes only. You should not take it as financial, investment, or other advice. Investing in or trading crypto assets is risky. Please consider your circumstances and risk profile before making any investment decisions.

HSBC To Offer e-CNY Services; Is China’s Financial Market Evolving?

Table of Contents

Thecoinrepublic.com

Other articles published on Jun 10, 2024

PEPE Drops 32.6%, Potential Buying Opportunity Amid Bullish Signals

Binance Eyes Global Expansion: Korea, UAE, Asia, & More!

XRP Price Prediction: Bull Run Or Crash? What Awaits Ripple As SEC Mulls Appeals

BlockDAG Keynote 2 Brings Massive Traction, Presale Hits $46.8M Mark, Will Toncoin and XLM Prices...

Rapid Fluctuations in Bitcoin Fees Cause Brief Spike in Hashprice

Tron Founder Justin Sun Nets $24.9M Profit from Crypto Trades

Join our free newsletter for daily crypto updates!