Bank of China Hong Kong Makes History with First Digital Yuan Cross-Border Trade

The Bank of China Hong Kong, the second-largest bank in the region, has achieved a significant milestone by completing its inaugural cross-border digital yuan-based trade.

Collaborating with its sister bank, the Bank of China conducted the transaction to facilitate the payment for a bulk trade of imported iron ore commodities, thereby establishing the digital yuan as a viable option for such settlements. Specifically, the Hong Kong branch of the Bank of China acted as an intermediary in settling a $3.4 million payment between Baosteel Group and Bao-trans Enterprises. This marked the first instance of the bank facilitating a commodity bulk settlement using the digital yuan.

By leveraging digital yuan wallets, both the Hong Kong subsidiary and the mainland-based branch facilitated the transaction, demonstrating the currency’s potential not only in retail payments but also in international settlements. Xing Guiwei, Deputy Chief Executive of Bank of China Hong Kong, highlighted the success of the trial transaction as a crucial step in normalizing digital yuan usage among corporations and contributing to the further development of yuan internationalization. This achievement aligns with China’s ongoing efforts to promote the global usage of its digital currency.

Clever Robot News Desk 18^th December 2023