The Bank of China’s Shanghai branch has successfully completed the first-ever cross-border settlement for precious metals using the digital yuan central bank digital currency (e-CNY CBDC). The settlement, which took place on December 20, involved the transfer of 100 million yuan ($14 million) e-CNY CBDC received overseas for gold via the Shanghai Financial Exchange International Board.
This milestone is seen as a significant step in the implementation of the free trade pilot zone promotion strategy in Shanghai and the upgrading of the international trade center. Bank of China Shanghai, a key supporter of e-CNY pilot testing, has been actively involved in facilitating various transactions using the digital yuan CBDC, including the import of iron ore and partnerships with foreign institutions.
China’s President Xi Jinping has previously emphasized the importance of CBDCs in cross-border trade during the July 2023 Shanghai Cooperation Organisation (SCO) Summit. Since then, foreign banks have joined China’s ongoing CBDC trials, and Singapore has announced that it will allow Chinese tourists to spend e-CNY during their trips. Additionally, China has signed a $400 million memorandum on CBDC cooperation with the United Arab Emirates.
On December 19, an update for the official e-CNY app was released, introducing new features such as the ability to create an e-CNY wallet using a phone number, disable the wallet in case of loss, and reset passwords and private keys. Users can also link their personal bank accounts and debit cards to purchase e-CNY within the wallet.
This latest development showcases the growing adoption and functionality of China’s digital yuan, which now includes smart contract capabilities and offers new use cases.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇨🇳 🇫🇷 🇸🇬 🇦🇪 |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | None |
| Companies | BNP Paribas, Shanghai Financial Exchange International Board, United Arab Emirates, Bank of China |
| Currencies | CBDC, Chinese Yuan |
| Securities | None |
