CBDC: China Uses Digital Yuan For a Cross-Border Transaction For the First Time
In a historic move, China has made waves in the global trade arena by executing its first-ever cross-border transaction for precious metals using the digital yuan.
The recent milestone saw the Bank of China’s Shanghai branch facilitating a transfer of 100 million yuan ($14 million) in e-CNY (CBDC) for the acquisition of gold through the Shanghai Financial Exchange International Board.
This breakthrough signifies China’s ambitious drive to elevate the digital yuan’s stature in the realm of worldwide trade. Highlighting the transaction’s significance, the Bank of China emphasized its pivotal role in bolstering Shanghai’s standing as a key player in international trade dynamics.
The Bank of China Shanghai has been actively engaged in testing the digital yuan, conducting diverse transactions, notably including imports of iron ore. Collaborative efforts with global banking entities such as Standard Chartered underline its commitment to advancing the digital yuan’s evolution.
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Chinese President Xi Jinping has been vocal about the transformative potential of digital currencies in shaping global trade landscapes, drawing interest from various foreign banks participating in China’s ongoing digital yuan trials. Meanwhile, Singapore is contemplating the integration of the digital yuan to cater to Chinese tourists during their visits.
Adding to these developments, China sealed a substantial $400 million agreement with the UAE on December 1, aiming to broaden the global footprint of the digital yuan. Notably, China also recently concluded its inaugural oil transaction using the digital yuan. These series of strategic moves underscore significant strides in China’s efforts to establish its digital currency presence on the global stage.
Alexander Stefanov
Reporter at CoinsPress
Alex is an experienced finance journalist and a cryptocurrency and blockchain enthusiast. With over five years of experience covering the industry, he deeply understands the complex and constantly evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His passionate approach allows him to break down complex ideas into accessible and insightful content. Follow up on his content to be up to date with the most important trends and topics - stay ahead of the curve with CoinsPress.
