- Historic transaction: Bank of China’s Shanghai branch conducted the first international digital Yuan transaction, marking a milestone in cross-border digital Yuan payments.
- Global CBDC Interest: As numerous countries explore and consider adoption, China’s progress in CBDC development has captured global attention and demonstrates growing global interest in digital currencies.
The Bank of China’s Shanghai branch collaborated with the Shanghai Gold Exchange to complete the first international digital yuan transaction, achieving a groundbreaking achievement of concluding a transaction worth 100 million yuan.
Pioneering cross-border digital yuan trading
As the within-border rollout of China’s central bank digital currency (CBDC) accelerates, the Bank of China’s Shanghai branch has made history by executing the best international digital RMB payment. This pivotal transaction marks a significant step forward in the practical implementation of cross-border digital yuan transactions.
This successful transaction was the result of a strategic partnership between Bank of China Shanghai Branch, Yuan Trading Division and BOC Hong Kong. A Shanghai branch spokesperson emphasized the harmonious synergy between the local and Hong Kong branches in executing this groundbreaking digital transaction.
The report emphasized that this is not the first time the Shanghai branch of the Bank of China has attempted digital yuan payments. Previously, the branch facilitated cross-border digital Yuan payments in the commodity area, especially using the digital currency to purchase imported iron ore for Baowu Group.
The bank has also played an important role in developing important system support for foreign financial institutions, including launching the digital RMB project for BNP Paribas (China) and promoting digital RMB business and payment systems.
Also read: Alibaba launches digital yuan payment feature on Alipay and Taobao platforms
CBDC development and global interest accelerate
China’s progress in developing CBDCs has received international attention, particularly highlighting CBDC’s unique programmable features. Analysts and foreign exchange regulators have highlighted the potential for CBDCs to significantly increase the effectiveness of monetary policy tools.
Recent developments have further solidified China’s focus on cross-border digital currency transactions, with Chinese state-owned banks actively participating in trials conducted by the Bank of International Settlements. This puts the country at the forefront of implementing a global digital currency.
Recent data from the Atlantic Council shows a significant increase in the number of countries actively considering CBDC adoption. This surge in interest is noteworthy. 130 countries, comprising 98% of global GDP, are exploring CBDC adoption, up from just 35 in May 2020.
Meanwhile, the acceptance of stablecoins has piqued the curiosity of central banks around the world and sparked discussions about potential problems for financial stability. Bank of Korea Governor Lee Chang-yong. In light of this, Governor Lee Myung-bak emphasized that central banks must accelerate the deployment of digital currencies to ensure stability and control in a rapidly changing monetary environment.