Bank of China Achieves First Cross-Border e-CNY Settlement for Precious Metals
Summary:
The Bank of China's Shanghai branch has managed the first-ever cross-border settlement for precious metals using the digital yuan central bank digital currency (e-CNY CBDC), which is set to enhance international trade. This comes amid increased foreign participation in China's ongoing CBDC trials and collaborations, including a $400 million memorandum with the United Arab Emirates and allowing e-CNY transactions during Chinese tourists' visits to Singapore. A new version of the e-CNY app has also been launched to offer users more control and functionality.
On December 20, a breakthrough was achieved with the successful execution of the first digital yuan central bank digital currency (e-CNY CBDC) settlement for precious metals across international boundaries. This event was facilitated by the Shanghai branch of the Bank of China, which oversaw the transfer of a 100 million yuan ($14 million) e-CNY CBDC remittance received internationally for gold via the Shanghai Financial Exchange International Board.
The bank iterated that the accomplished transaction would embolden Shanghai's free trade pilot zone promotion strategy and bolster the advancement and enhancement of the international trade center. Currently, the Shanghai branch of the Bank of China is among the key advocates for e-CNY pilot assessments and has recently assisted with importing iron ore to China via the e-CNY. The institution also joins forces with foreign entities, such as BNP Paribas in France, to develop the digital yuan CBDC.
In an address to the Shanghai Cooperation Organisation (SCO) Summit in July 2023, China’s President Xi Jinping extolled the crucial role of CBDCs in international commerce. Since then, an assortment of foreign banks have participated in China's ongoing CBDC experiments, while Singapore has permitted Chinese tourists to expend e-CNY within its borders during their visits. Earlier in December, China inked a $400 million memorandum on CBDC collaboration with the United Arab Emirates.
The most recent iteration of the official e-CNY app was unveiled on December 19. New additions allowing users to set up an e-CNY wallet via their cell number, deactivate their wallet if their phone is misplaced, and reset their password and private keys were added. It also includes a provision for users to link their personal bank accounts and debit cards to acquire e-CNY internally have been implemented.
Published At
12/20/2023 10:47:45 PM
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