China Recruits Banks for Digital Yuan Project

China has enlisted 26 financial institutions to bolster its digital yuan initiative. This strategic move aims to enhance the efficiency and reduce the cost of cross-border payments, thereby encouraging wider international acceptance of the yuan. Participants will integrate with the Cross-border e-CNY Transfer Services (CBETS) platform, signaling a significant step towards globalizing its central bank digital currency (CBDC) and challenging existing international payment systems. The expansion is expected to facilitate smoother transactions and potentially reshape global financial flows.