Chinese banks explore local e-CNY wallets for foreign firms via upgraded platform

An e-CNY wallet is a digital account for holding and using China’s central bank-backed currency. A local wallet for a foreign company would give that business a direct place to receive, store, and spend e-CNY through an overseas bank or Hong Kong branch. This could make cross-border renminbi activity more integrated.

CBETS works differently. It is infrastructure that lets overseas banks process cross-border e-CNY payments. China’s upgraded platform allows round-the-clock payments without forcing those banks to replace their existing information-technology systems. Access therefore happens through the bank’s connection to CBETS, rather than through a local enterprise wallet.

China is encouraging overseas institutions to open local e-CNY wallets for foreign enterprises. ICBC said these wallets could bring companies more benefits. HSBC already gives mainland corporate clients e-CNY directly into operational accounts, suggesting that direct business use is becoming more practical as cross-border transaction volumes grow.

China is extending its e-CNY network beyond domestic institutions to offshore banks. The immediate focus includes Hong Kong branches of banks that already operate the digital yuan in mainland China. This matters because offshore institutions could serve customers closer to where cross-border business actually takes place.

Lu Yuan said China currently has 30 domestic banks acting as e-CNY operators and hopes their Hong Kong branches can open e-CNY accounts. Those accounts could be offered to both enterprises and individual clients. The service would move beyond indirect system access and bring e-CNY banking functions to Hong Kong customers.

Overseas banks currently reach the system through CBETS, the Cross-border e-CNY Transfer Services platform. China launched its commercial upgraded version in June. It supports continuous digital payments and avoids a complete legacy-system overhaul. The next step is broader local-wallet access through offshore institutions.

The e-CNY has already reached substantial scale. By September, approximately 4.3 billion transactions had been processed, with a combined value of around 31 trillion yuan. These figures show that China’s central bank digital currency is moving beyond a small technical pilot.

The system is operated domestically by 30 banks, according to Lu Yuan of the People’s Bank of China’s digital currency research institute. Major participants include ICBC, China’s largest bank by assets. ICBC has recorded cumulative e-CNY transaction volumes reaching hundreds of billions of yuan and is also a direct participant in CBETS.

China began piloting the digital yuan in selected cities in 2019. Earlier this year, the central bank upgraded it from a cash equivalent to digital deposit money, allowing it to accrue interest like bank deposits. China is now expanding offshore connections while usage and cross-border services continue growing.

Direct e-CNY wallets could make digital renminbi easier for foreign companies to use in ordinary operations. A company could potentially receive and hold e-CNY locally, then use it for eligible payments without depending entirely on an overseas bank’s indirect connection. This would deepen cross-border integration.

ICBC executive Zhang Yi urged overseas institutions to explore local enterprise wallets so foreign companies could gain more benefits. HSBC provides a concrete example of direct business use: its mainland corporate clients already receive e-CNY directly into their operational accounts. HSBC also reported strong demand for cross-border renminbi settlements.

The article does not list specific savings or new capabilities created by local wallets. It does show that corporate use is becoming regular. Transaction volumes under CBETS and mBridge have grown steadily, and companies now use e-CNY in daily operations. Wider wallet access could extend that trend to more foreign enterprises.

The upgraded CBETS platform matters because overseas banks can connect to China’s e-CNY payment infrastructure without overhauling their older information-technology systems. Replacing those systems can be disruptive and expensive, so compatibility makes participation easier. Round-the-clock processing also supports continuous cross-border payment activity.

China launched the commercial version of upgraded CBETS in June. Overseas banks use the platform to process cross-border e-CNY payments, and some banks are direct participants. ICBC is among the first batch of direct participants and has reported cumulative transaction volumes reaching hundreds of billions of yuan.

The platform is also free of charge, according to ICBC executive Zhang Yi. That combination of lower technical disruption, continuous availability, and no platform fee may encourage more banks to connect. The article presents CBETS as a practical bridge while China works toward broader local-wallet services.

These initiatives are complementary rather than identical. CBETS connects overseas banks to China’s e-CNY system and supports cross-border digital yuan payments. mBridge is described as a multilateral initiative under which transaction volumes have also grown. Both support international settlement, but the article gives no detailed comparison of their technical designs.

The upgraded CBETS platform lets banks process payments continuously without replacing legacy IT systems. HSBC said volumes under CBETS and mBridge had grown steadily, with corporate customers using e-CNY in daily operations. This shows that multiple channels can support practical cross-border renminbi activity.

Hong Kong’s broader plan is to let different payment solutions coexist and interoperate. The Financial Services Development Council recommended stronger infrastructure, regulatory coordination, digital assets, tokenisation, and cross-border trust infrastructure. Together, these measures could reinforce Hong Kong’s role as a multicurrency payment centre while preserving flexibility as standards change.

A central bank digital currency is digital money issued or backed by a central bank. Cash is also central bank money, but it is physical. Ordinary bank deposits are balances recorded by commercial banks, and commercial-bank payment accounts are tools those banks provide for moving such balances. The article describes e-CNY as central bank-backed digital currency.

The distinction is becoming less sharp in one respect. China’s central bank upgraded e-CNY from a cash equivalent to digital deposit money earlier this year. That change allows it to accrue interest like bank deposits. The article does not explain every legal or technical difference between e-CNY, commercial deposits, and payment accounts.

In practice, e-CNY can be held and used through wallets or operational accounts. Domestic banks operate the system, while overseas banks connect through CBETS. China is now exploring local wallets for foreign companies and Hong Kong branches, extending digital central bank money into cross-border banking activity.