China How the e-CNY will be transacted
I expect that China will promote the use of the e-CNY for international trade in the following way:

a) Foreigners are allowed to open an e-wallet to keep e-CNY.

b) They can transfer money into the e-wallet using an account with any participating bank. Initially, the four big banks in China will participate. I expect other foreign banks will also participate. 

c) Foreigners can pay to a China supplier using e-CNY from their e-wallet to the e-wallet of the supplier. 

d) The supplier can convert the e-CNY into the domestic CNY or vice versa by going through the exchange control approval. This can be done quickly through the digital platform. 

e)  If the supplier keeps the e-CNY, they do not need to go through the exchange control.

f) Remittance companies will also use the digital platform and e-CNY for international payments, as the cost is likely to be lower than USD/Swift.


f) Transaction through the digital platform will be much cheaper than payment using USD through the SWIFT system. 

I expect that the growth of e-CNY and the digital platform will be quite rapid, and more rapid that what most people expect. 

Tan Kin Lian

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