The Bank of China’s Shanghai division has successfully completed its first transaction involving precious metals using China’s official central bank digital currency (CBDC), the digital yuan. The transaction, worth $14 million, took place on December 19 and was facilitated by receiving funds from abroad. This marks a significant milestone in the utilization of the digital yuan for fine metal trades and establishes Shanghai as a global financial center.
This is not the first achievement for the Bank of China with the CBDC. Earlier this month, the bank carried out a transaction between its Shanghai and Hong Kong branches, involving a payment settlement for Baosteel Group and Bao-trans Enterprises. The transaction, worth $3.4 million, represented the digital yuan’s first foray into the commodities market.
China is also advancing its international digital yuan initiatives. The government recently collaborated with the Monetary Authority of Singapore (MAS) on a pilot program to facilitate tourists’ use of the digital yuan for transactions in both countries. This program aims to promote tourism and enhance the use of CBDCs.
In summary, the use of CBDCs allows the Chinese government to leverage blockchain technology for faster and more efficient transactions while maintaining control over the market. This move towards digital currencies demonstrates China’s willingness to embrace digital innovation and explore new possibilities in the financial sector.
This News Article was automatically generated by Bob the Bot (AI)
| Information | Details |
|---|---|
| Geography | Asia |
| Countries | 🇨🇳 🇸🇬 |
| Sentiment | very positive |
| Relevance Score | 1 |
| People | None |
| Companies | Monetary Authority of Singapore (MAS), Bank of China, Baosteel Group, Bao-trans Enterprises, Shanghai Gold Exchange |
| Currencies | US Dollar, CBDC, Chinese Yuan |
| Securities | None |
