In a groundbreaking financial event, the Bank of China’s Shanghai branch successfully executed the first cross-border settlement using the digital yuan (e-CNY) for precious metals. On December 20, a transaction involving 100 million yuan (approximately $14 million) was completed for a gold purchase through the Shanghai Financial Exchange International Board. This marks a significant step in the utilization of China's central bank digital currency (CBDC) in global trade.
The Bank of China Shanghai is a leading entity in the digital yuan pilot program and has previously facilitated the import of iron ore into China using the CBDC. The bank is also collaborating with international financial institutions like France's BNP Paribas to further develop the digital yuan.
This development aligns with Chinese President Xi Jinping's emphasis on the importance of CBDCs in cross-border trade. Various foreign banks have joined China’s ongoing CBDC trials, and Singapore recently announced that it would allow Chinese tourists to spend digital yuan during their visits. Additionally, China has signed a $400 million memorandum on CBDC cooperation with the United Arab Emirates.
Disclaimer: Please note that the information provided in this article is based on the referenced research articles. It is essential to conduct further research and analysis before making any investment decisions. The cryptocurrency market is highly volatile, and investors should exercise caution and consult with financial professionals before engaging in cryptocurrency trading or investment activities.
