On 16 January, the international cross-border payments system SWIFT and the People’s Bank of China (PBoC) registered a joint venture, Finance Gateway Information Service Limited. Based on the name, it will focus on developing a payment gateway, CoinDesk reports.
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The company’s mandate is unknown; its founders did not respond to the publication’s requests for comment. Public sources indicate the venture will specialise in information-systems aggregation, data processing, and technology consulting.
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The registered capital of Finance Gateway Information Service stands at €10 million ($12 million). Fifty-five percent is owned by SWIFT’s Hong Kong subsidiary, 42% by several PBoC subsidiaries, with the remaining stake held by the China Payment Clearing Association (PCAC).
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The company is led by Huang Meilun, SWIFT’s head in China. The vice-president is Chen Shigan, a representative of PCAC. The board also includes three SWIFT members and one representative from the PBoC’s Digital Currency Institute.
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In August last year, SWIFT opened a subsidiary in China to support the country’s efforts to internationalise the yuan.
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Earlier in December, the Hong Kong Monetary Authority discussed testing the digital yuan (DCEP) with the People’s Bank of China.
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Earlier Deutsche Bank analysts said that the Belt and Road Initiative and DCEP will remove the need to use SWIFT and give the yuan to become an international reserve currency.
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In January, Beijing and Shanghai authorities announced a large-scale test of the DCEP.
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