PetroChina Completes First International Crude Oil Trade Using Digital Yuan
In a historic move, PetroChina, a Chinese state-owned oil and gas company, has successfully conducted its first international crude oil trade using the digital yuan (e-CNY).
The Shanghai Petroleum and Natural Gas Exchange (SHPGX) announced the transaction, revealing that PetroChina purchased 1 million barrels of oil. The seller’s identity and the exact value of the deal in yuan were not disclosed.
The digital yuan is a central bank digital currency (CBDC) issued by the People’s Bank of China. It can be used for both domestic and international transactions and aims to eliminate cash while combating money laundering and terrorist financing.
Pushing for Cross-Border Trade with Digital Yuan
The SHPGX stated on its website that this transaction with PetroChina is part of its efforts to meet government requirements for using the e-CNY in cross-border trade.
Earlier this year, the SHPGX facilitated the first yuan-based purchase of liquefied natural gas between the China National Offshore Oil Corporation and France’s TotalEnergies.
According to the central bank, cross-border transactions using e-CNY reached 10.16 trillion yuan ($1.36 trillion) from January to September.
The Growing Influence of Digital Yuan
Despite volatility in the market, the digital yuan is gaining prevalence among international organizations. Its increasing use in emerging economies contributes significantly to its adoption.
In June, the Bank of Argentina announced that it would enable RMB deposits and withdrawals within its banking system, further demonstrating the growing influence of the digital yuan.
Hot Take: The Rise of Digital Yuan in Global Trade
The completion of PetroChina’s first international crude oil trade using the digital yuan signifies a significant milestone for China’s central bank digital currency. The successful transaction demonstrates the potential of the digital yuan in facilitating cross-border trade and its growing acceptance among international organizations.
With its focus on eliminating cash, combating money laundering, and promoting secure transactions, the digital yuan presents a viable alternative to traditional currencies in global trade. As more emerging economies embrace its use, the digital yuan is poised to play a crucial role in shaping the future of international transactions.
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