China’s Central Bank has launched the China International Payment System (CIPS) in Shanghai on Thursday, according to state media. It’s phase one in a plan that will facilitate trade clearing services for cross-border RMB transactions. The second phase of the project  is expected to improve clearing efficiency for direct participants in the RMB market.

The latest application of CIPS system, which was founded in 2012, will cut the payment costs of both enterprises and individuals by enhancing the transaction efficiencies. Previously, cross-border clearing of RMB funds had to be transacted through one of the offshore RMB clearing banks in places like Hong Kong, Singapore and London, or else with the help of a corresponding bank on the Chinese mainland.

The system could ease pressures on both local and international e-commerce platforms, which have been historically hindered by the rigid transaction system.

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Emma Lee

Emma Lee is Shanghai-based tech writer, covering startups and tech happenings in China and Asia in general. We are looking for stories related to tech and China. Reach her at lixin@technode.com.