BNP Paribas (China) and the Bank of China (BOC) plan to collaborate to launch digital wallet services and promote interbank wallet application of the e-CNY, or digital yuan, the fiat currency in a digital form issued by the People’s Bank of China, the nation's central bank.

Through the collaboration, BNP Paribas will connect its system with that of the BOC and carry out straight-through business operations, and launch a series of fundamental functions in e-CNY, such as digital wallets, to meet corporates’ business needs in e-CNY payments.

Going forward, with the aim of promoting broader e-CNY use cases, as well as a wider scope of e-CNY functionalities, BNP Paribas says it and the BOC will continue to drive the use of e-CNY in domestic online and offline payments, supply-chain finance and utility payments, as well as innovative applications in smart contracts and cross-border payment settlement through the m-CBDC Bridge Project.

Bruno Weill, chief group representative of BNP Paribas for China, adds: “The e-CNY will effectively increase the diversity and versatility for payments and help improve the efficiency and security of the payment system.”