The Shanghai Petroleum and Natural Gas Exchange (SHPGX) stated that the digital yuan was utilized to settle an oil transaction for the first time.
The Shanghai Petroleum and Natural Gas Exchange (SHPGX) stated that the digital yuan, China's central bank digital currency (CBDC), was utilized to settle an oil transaction for the first time.
On October 19, PetroChina International purchased one million barrels of crude in response to the Shanghai Municipal Party Committee and Municipal Government's request to apply the CBDC to international commerce. The name of the vendor and the price were not published.
This big milestone for the digital yuan reflects China's broader attempts to enhance yuan usage in overseas markets and promote de-dollarization. The yuan's cross-border settlement usage climbed by 35% year on year in the first three quarters of 2023, reaching $1.39 trillion.
The expansion of the digital yuan into worldwide transactions is consistent with China's continuous efforts to build cross-border CBDC transactions, such as the mBridge platform, which includes partners such as the United Arab Emirates and China's Bank of China. The city of Jinan has also adopted Digital Yuan payments for its bus routes, while DBS bank launched a CBDC platform for corporate clients in China.
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