China Performs First Cross-Border Transaction With CBDC (e-CNY)
China achieves first cross-border precious metals settlement with its digital yuan, marking a significant step in international trade.
China achieved a milestone by completing its first international transaction using the digital yuan (e-CNY) for precious metals. On December 20, the Bank of China's Shanghai branch transferred 100 million yuan ($14 million) in e-CNY (CBDC) for gold, using the Shanghai Financial Exchange International Board.
This event is crucial for China's goal to increase the digital yuan's role in global trade. The Bank of China emphasized this settlement's role in boosting Shanghai's international trade capabilities.
The Bank of China Shanghai is a key player in testing the digital yuan and has conducted several transactions, including iron ore imports. It collaborates with international banks like Standard Chartered to enhance the digital yuan's development.
President Xi Jinping of China has stressed the importance of digital currencies in global trade. Several foreign banks are participating in China's digital yuan trials. Singapore plans to let Chinese tourists use the digital yuan during their visits.
Additionally, on December 1, China signed a $400 million agreement with the UAE to expand the digital yuan's global use. Recently, China also completed its first oil transaction with the digital yuan. This series of events marks significant progress in China's digital currency efforts in the international market.
