Industrial Bank to Drive Interbank Cooperation on Digital Renminbi Usage

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Regional lender Industrial Bank Co., Ltd. hopes use its role as primary operating institution for the digital renminbi to drive the further integration of smaller scale banks into system for usage of China’s central bank digital currency (CBDC).

Industrial Bank, which was recently designated by the Chinese central bank as a primary operating institution for the digital renminbi, said that it would “employ its own advantages in the area of interbank cooperation to actively drive digital renminbi cooperation between banks.”

Industrial Bank said that it had already entered digital renminbi cooperative agreements with multiple institutions such as Huatong Bank (εŽι€šι“Άθ‘Œ), as well as municipal commercial banks, rural commercial banks and private banks.

Under the agreements Industrial Bank will use its role as a digital renminbi primary operating institution to provide comprehensive digital renminbi services to the clients of “2.5 tier” cooperating banks. These services include the opening and authorisation of digital renminbi wallets, as well as exchange, money transfer, inquiry, collection and payment services.

Industrial Bank said that the next step would be for it to “create more unique scenarios and commercial models for the digital renminbi, continually expand the services network, and becoming a leading digital renminbi operating institution, to make a new contribution to the development of the payments system, overcoming digital divides, expediting rural village development and driving the growth of financial inclusion.”