China Explores Digital Finance for New Trade Corridor

On December 24, eight Chinese government departments led by the People’s Bank of China proposed bolstering digital finance collaborations along the Western Land-Sea New Corridor, including cross-border digital currency pilots.

The initiative aims to enhance regional digital finance integration, potentially reshaping cross-border payment systems with key economies like Thailand and Singapore, advancing digital RMB applications.

China Initiates Cross-Border Digital Payments with CBDC

The “Opinions” propose exploring international cooperation in digital finance along the corridor, involving central bank digital currencies (CBDC) in cross-border payments with countries like Thailand and Singapore. The aim is to leverage digital RMB for innovative payment technologies and e-commerce platform enhancements.

Participating regions will strengthen their cross-border financial services by using digital RMB. Expected benefits include increased use of RMB for trade settlements and reducing transaction costs, while reinforcing China’s commitment to global digital finance.

Western Corridor Boosts Financial Strategies, With No Immediate Market Impact

Did you know? The push for digital RMB in the Western Land-Sea Corridor aims to emulate China’s previous efforts that expanded freight to more than 542 ports globally.

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