The Shanghai Clearing House has introduced support for the Chinese central bank digital currency (CBDC), the digital yuan, allowing customers to settle bulk commodities payments with no added fees. Experts believe that using the digital yuan in a large clearing house business will improve efficiency in managing commodity settlements. China was the second-largest commodities importer in the world in 2021, and this move can facilitate the internationalization of the Chinese currency.
The People’s Bank of China has been positioning the digital yuan as a cross-border transactional currency after successful tests in retail environments. The currency is also being tested with the Faster Payments System to enable Hong Kong citizens to pay with the digital yuan in mainland China. The city of Changshu has already adopted the digital yuan for wage payments, and the autonomous region of Guanxi plans to use it as a settlement currency in cross-border trade with other ASEAN countries.
Overall, the introduction of support for the digital yuan by the Shanghai Clearing House and other initiatives highlight China’s efforts to promote the use and acceptance of its digital currency both domestically and internationally.
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