Today, BNP announced a collaboration with the Bank of China, launching a new digital wallet service and wallet applications for e-CNY, the digital currency of the Chinese yuan.

Both banks will cooperate to expand e-CNY usage for domestic online and offline payments. BNP Paribas will connect its system with the Bank of China’s, allowing straight-through processing, which will allow it to offer digital wallet functions that meet the needs of corporate clients when it comes to payments.

The announcement also maintained that it will allow BNP Paribas to offer supply chain finance and utility payment services. It will also be used for smart contract applications and cross-border payments through the so-called m-CBDC bridge (Central Bank Digital Currency).

BNP Paribas China CEO CG Lai said, “While this collaboration can supplement the Bank’s offline payment collection capabilities and further optimise our clients’ account structure, this also reinforced the Bank’s commitment to the China market.”

Louise Zhang, head of BNP Paribas transaction banking said that the collaboration will help “provide innovative, efficient cash management and trade financing services to local and multinational clients.”

The e-CNY is a fiat currency issued in digital form by the country’s central bank, the People’s Bank of China (PBoC) that has been piloted in various cities in China