China’s home-grown cross-border yuan payments system aims to expand reach by end of 2021
- China’s Cross-Border Interbank Payment System will increase the number of direct taking part banks using the system to nearly 80 by the end of this year
- CIPS is also seen as a possible alternative to the US-dominated global settlement system comprising of Swift and Clearing House Interbank Payments System
China is quietly growing its home-grown payments system to allow cross-border transactions in yuan as trade and investment with the rest of the world grows and Beijing makes a bigger push to globalise the local currency.
Cross-Border Interbank Payment System, run by CIPS and launched by the central bank in 2015 to settle international claims in yuan, will increase the number of direct taking part banks using the system to nearly 80 by the end of this year from the current 71, Xu Zaiyue, chief executive officer of CIPS, said in an interview.
“The expansion will make it more convenient for global clients to use CIPS services,” said Xu. “We hope to provide services all around the globe one day, and especially to facilitate services to overseas participants.”
Based in Shanghai and employing over 100 people, CIPS counts three dozen domestic and foreign banks like HSBC Holdings and Standard Chartered as its shareholders, as well as financial market infrastructure operators.