The People’s Bank of China has agreed a partnership with the global interbank settlement organization SWIFT, as part of an effort to internationalize the yuan and develop a digital Chinese currency.

The new entity, Finance Gateway Information Service, was registered in Beijing on January 16 with €10 million ($12 million) as incorporation capital, according to the National Enterprise Credit Information Publicity System, the Chinese government’s enterprise credit information agency.

SWIFT is the largest shareholder, with 55 percent of the capital owned via a Hong Kong subsidiary, while the China National Clearing Centre, a wholly-owned domestic settlement subsidiary of the PBOC, owns 34 percent.

“As a global neutral cooperative, SWIFT always acts in the interests of the entire member community,” SWIFT said in an emailed statement to the South China Morning Post (SCMP).”We have been part of China’s financial markets for more than 30 years … and, as we do everywhere we operate, we make adjustments as necessary to remain compliant with regulatory requirements.” (RT)