A joint venture between the world’s largest electronic payment messaging system and the department responsible for China’s proposed central bank digital currency is being viewed as a sign that Beijing is exploring the global use of its planned sovereign digital currency and aiding its desire to internationalize the RMB, reported the South China Morning Post.
Calls have been growing from within China for Beijing to reduce its reliance on the US dollar by increasing the global use of the RMB amid deteriorating relations with the United States, said the SCMP.
While it remains unclear at this stage as to the scope of the joint venture between SWIFT and both the Digital Currency Research Institute and the China National Clearing Centre within the People’s Bank of China (PBOC), the development of the digital RMB could help promote its international use and support the nation’s push to rival the US as a global economic power, analysts said.
“As a global neutral cooperative, SWIFT always acts in the interests of the entire member community,” SWIFT said in an emailed statement to the SCMP. “We have been part of China’s financial markets for more than 30 years … and, as we do everywhere we operate, we make adjustments as necessary to remain compliant with regulatory requirements.