China recorded its first-ever cross-border settlement for precious metals using the digital yuan central bank digital currency (CBDC), also known as the e-CNY.
China recorded its first-ever cross-border settlement for precious metals using the digital yuan central bank digital currency (CBDC), also known as the e-CNY. On December 20, the Bank of China's Shanghai branch successfully transferred a 100 million yuan ($14 million) e-CNY CBDC settlement received overseas for gold via the Shanghai Financial Exchange International Board.
This development marks a major step forward in China's efforts to promote the use of its digital currency in international trade. The Bank of China highlighted the importance of the settlement in supporting Shanghai's free trade pilot zone strategy and enhancing the quality of the international trade center.
Bank of China Shanghai has been actively involved in the digital yuan pilot testing and has facilitated various transactions using the CBDC, including the import of iron ore to China. The bank also collaborates with foreign institutions, such as Standard Chartered, to advance the development of the digital yuan.
Chinese President Xi Jinping has emphasized the significance of CBDCs in cross-border trade, and several foreign banks have joined China's ongoing CBDC trials. Singapore has also announced that it will allow Chinese tourists to spend digital yuan during their visits to the country.
On December 1, China signed a $400 million memorandum on CBDC cooperation with the United Arab Emirates, further expanding its international reach. Last month, China’s Shanghai Petroleum and Natural Gas Exchange settled its first oil deal using the e-CNY.
Let us know what you loved about this article, what could be improved, or share any other feedback by filling out this short form.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
