China’s Bank of China Completes Cross-Border Settlement for Precious Metals Trading with Digital Yuan
The Bank of China, one of the country’s major lenders, has successfully conducted the first cross-border settlement for precious metals trading using digital yuan. The Shanghai branch of the state-owned bank transferred 100 million yuan in cash from an overseas buyer and converted it into digital yuan, depositing it into an account under the Shanghai Gold Exchange. This transaction also involved collaboration with the bank’s Hong Kong branch.
Bank of China’s History of Engaging in Digital Yuan Pilot Projects
The Bank of China has been actively participating in various pilot projects involving the country’s central bank digital currency (CBDC). In May, the bank partnered with BNP Paribas to promote the use of digital yuan among the French institution’s corporate clients in China.
Significant Growth in Digital Yuan Adoption in China
The adoption of digital yuan in China is experiencing notable growth, with total e-yuan transaction volumes reaching 950 million and a cumulative value of 1.8 trillion yuan as of July.
China Nearing Conclusion of Digital Yuan Pilot
Former People’s Bank of China Governor Zhou Xiaochuan stated that China is nearing the conclusion of its multi-year digital yuan pilot. He emphasized the significant business opportunity in cross-border payments for central bankers to explore.
Hot Take: Bank of China Expands Digital Yuan Application with Cross-Border Settlement for Precious Metals Trading
The Bank of China’s successful completion of the first cross-border settlement for precious metals trading using digital yuan showcases the expanding application and potential of China’s central bank digital currency. With growing adoption and increasing transaction volumes, digital yuan is gaining momentum in China. The bank’s active engagement in pilot projects further highlights its commitment to exploring the opportunities presented by digital currency. China’s progress in its multi-year digital yuan pilot indicates that the nation is moving closer to widespread implementation. As cross-border payments continue to be a significant area of interest, the completion of this settlement demonstrates the potential for digital yuan to revolutionize international transactions.
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