China\u2019s recent changes to the rules governing its global payment system could pave the way for turning it into a genuine alternative to Western networks, according to a new report.<\/p>\n
Beijing now appears to be moving towards building the Cross-border Interbank Payment System (CIPS) into a global platform compliant with multicurrency settlements and other foreign payment channels, said the study led by Ju Jiandong, a chair professor at Tsinghua University\u2019s PBC School of Finance.<\/p>\n
Beijing recently undertook the first major update to the business rules governing the CIPS \u2013 which previously focused on yuan-denominated payments \u2013 in eight years, with the new version coming into effect in February.<\/p>\n
In the revised regulations, the system\u2019s mandate has expanded from cross-border yuan transactions and financial operations to include the offshore yuan, as well as \u201cother business approved by the People\u2019s Bank of China\u201d.<\/p>\n
The new rules also include a line explicitly mandating the creation of separate operational guidelines for \u201cthe processing of cross-border payments in foreign currencies such as Hong Kong dollars through the CIPS\u201d.<\/p>\n
The updated regulations have also eliminated a set of strict rules on which financial institutions can participate in the CIPS, instead authorising operating institutions to formulate their own management rules for participants.<\/p>\n","protected":false},"excerpt":{"rendered":"China\u2019s recent changes to the rules governing its global payment system could pave the way for turning it…\n","protected":false},"author":2,"featured_media":353726,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[255,576,2102,35905,72,114,160804,160803,109190,113,240,61,60,160802,23221,27593,90,1097,160801],"class_list":["post-353725","post","type-post","status-publish","format-standard","has-post-thumbnail","category-economy","tag-africa","tag-asia","tag-beijing","tag-belt-and-road-initiative","tag-business","tag-china","tag-china-finance","tag-clearing-house-interbank-payments-system","tag-cross-border-interbank-payment-system","tag-economy","tag-hong-kong","tag-ie","tag-ireland","tag-ju-jiandong","tag-peoples-bank-of-china","tag-tsinghua-university","tag-us","tag-us-dollar","tag-western"],"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/353725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/comments?post=353725"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/posts\/353725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media\/353726"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/media?parent=353725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/categories?post=353725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ie\/wp-json\/wp\/v2\/tags?post=353725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}