The People’s Bank of China (PBoC) has set up a joint venture with SWIFT to comply with Chinese regulatory requirements on digital yuan, Reuters has learned. SWIFT claims it will get all the necessary licenses for local network management activities to focus on maintaining compliance with applicable regulations in China.
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The joint venture includes PBoC’s digital currency research institute and clearing center, Cross-border Interbank Payment System (CIPS) and the Payment & Clearing Association of China. The entity, dubbed Finance Gateway Information Services Co, will process data, integrate information systems and conduct technological consultancy.
“SWIFT and four payments market participants and infrastructure providers are setting up a joint venture to comply with Chinese regulatory requirements,” SWIFT noted.
In December last year, Russia’s central bank, the Bank of Russia, warned that cryptocurrencies could eventually become a competitor against the SWIFT payment system. Olga Skorobogatova, First Deputy Governor of the Bank of Russia.
As a result, SWIFT “may not be needed,” as these are already other technological interactions, said Olga Skorobogatova, First Deputy Governor of the Bank of Russia.
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