Aviation trade association IATA adds support for Chinese CBDC by end of 2024: Report

The trade association for global airlines plans to integrate the digital yuan into its payment systems by the end of 2024 to enhance payment options.

Reflecting the growing adoption of digital currencies in global finance, the International Air Transport Association plans to integrate China’s central bank digital currency (also known as digital yuan or e-CNY) into billing and payment systems by the end of 2024. It’s a plan.

In an October 29 Times Aerospace report, Muhammad Albakri, IATA’s Senior Vice President of Financial Payments and Distribution Services, emphasized the need to adapt in response to evolving payment preferences.

“As the use of digital currencies increases, it is essential that IATA’s industry financial payments system adapts to support the needs of those who use our services.”

Muhammad al-Bakri

China’s digital currency will be offered through the China Billing and Settlement Scheme at the request of IATA’s China Aviation Committee. In addition to the digital yuan, IATA is exploring integrating other digital currencies into its payment system, but no details or timeline for integration has been provided.

Earlier this year, IATA added Yuan offshore to its currency clearance services, offering a total of 74 currencies and allowing airlines to transfer sales funds in their preferred currency, helping them better manage their cash and reduce foreign exchange risk.

Last October, Changchun Mu, director of the People’s Bank of China’s Digital Currency Research Institute, said in a SINA column that as of July, the digital yuan platform had registered 180 million personal wallets, with a total transaction volume of 1 yuan (about 1,000 won). He said he did. In pilot areas, it is ₹7.3 trillion ($1.2 trillion).