Standard Chartered and Bank of Communications Sign a Memorandum of Understanding on Digital Currency Strategic Cooperation to Jointly Promote Digital Currency Applications

Standard Chartered and Bank of Communications Sign a Memorandum of Understanding on Digital Currency Strategic Cooperation to Jointly Promote Digital Currency ApplicationsDuring the Sibos 2024, the annual conference of SWIFT, Standard Chartered and Bank of Communications signed a Memorandum of Understanding on Digital Currency Strategic Cooperation (Memorandum) in Beijing on October 21, 2024. This cooperation aims to promote joint innovation and business development in the digital currency field, including the digital yuan, and jointly drive the development and application of digital currency

Standard Chartered and Bank of Communications Sign a Memorandum of Understanding on Digital Currency Strategic Cooperation to Jointly Promote Digital Currency Applications

During the Sibos 2024, the annual conference of SWIFT, Standard Chartered and Bank of Communications signed a Memorandum of Understanding on Digital Currency Strategic Cooperation (Memorandum) in Beijing on October 21, 2024. This cooperation aims to promote joint innovation and business development in the digital currency field, including the digital yuan, and jointly drive the development and application of digital currency.

Bill Winters, Group Chief Executive Officer of Standard Chartered, and Zhang Baojiang, President of Bank of Communications, attended the signing ceremony. According to the Memorandum, both parties will establish a joint working group to jointly explore the establishment of a basic system and mechanism for cross-border payment and settlement of digital currency, enhance the efficiency and convenience of cross-border payment and settlement, jointly create richer application scenarios for digital currencies, and ultimately expand the application scope of digital currency through the incremental customer value brought by application scenario innovation.

Standard Chartered has been actively involved in the innovation and development of the digital currency ecosystem. In November 2023, Standard Chartered Bank (China) Limited became one of the first foreign banks to participate in the digital yuan pilot program. Previously, Standard Chartered Bank (Hong Kong) Limited participated in the "Multilateral Central Bank Digital Currency Bridge" concept verification test project in September 2022. This project, through the infrastructure of the currency bridge, provides cross-border payment and settlement services for real transactions of real enterprises.

This cooperation marks a significant step in the strategic cooperation between Standard Chartered and Bank of Communications in the field of digital currency. Both parties will jointly explore application scenarios for digital currencies and promote the use of digital currencies in areas such as cross-border payment and settlement, making positive contributions to the development and application of digital currencies.

The Future of Digital Currency Cross-Border Payment and Settlement

Digital currency has broad application prospects in the field of cross-border payment and settlement, effectively addressing the problems of low efficiency, high cost, and complex processes in existing cross-border payment and settlement. Digital currency cross-border payment and settlement has the following advantages:

• Increased Efficiency: Digital currency transactions do not need to go through traditional banking systems, enabling real-time settlement and improving the efficiency of cross-border payment and settlement.

• Reduced Cost: Digital currency transactions do not require high intermediary fees, reducing the cost of cross-border payment and settlement.

• High Security: Digital currency transactions use encryption technology to ensure the security and privacy of transactions.

• Enhanced Transparency: Digital currency transaction records are open and transparent, enhancing the transparency of cross-border payment and settlement.

Significance of the Cooperation between Standard Chartered and Bank of Communications

The strategic cooperation between Standard Chartered and Bank of Communications will further promote the application of digital currency in the field of cross-border payment and settlement. The cooperation between the two parties will provide technical support and application scenarios for cross-border payment and settlement of digital currency, making significant contributions to the development and application of digital currency.

Future Outlook

The development and application of digital currency will continue to deepen, and more innovative application scenarios will emerge in the future. The cooperation between Standard Chartered and Bank of Communications will provide new ideas for the development and application of digital currency, promoting the application of digital currency in more areas.

Conclusion

The signing of the Memorandum of Understanding on Digital Currency Strategic Cooperation between Standard Chartered and Bank of Communications marks a deep cooperation between the two parties in the field of digital currency, and will jointly promote the development and application of digital currency in China and globally. It is believed that in the future, digital currency will be more widely applied in the financial field, making greater contributions to global economic development.