Bank Of China Sets Milestone With Digital Yuan In Precious Metal Settlement
On December 19, the Shanghai branch of the Bank of China achieved a significant milestone by completing the inaugural settlement of precious metals using the digital yuan, China’s central bank digital currency (CBDC).
The bank collaborated closely with the Shanghai Gold Exchange and successfully closed a $14 million precious metal trade, marking the first instance of using the Chinese digital yuan in a fine metal transaction. Emphasizing the strategic importance of this trade, a spokesperson for the Bank of China’s Shanghai branch highlighted its role in bolstering Shanghai’s position as an international financial hub.
This achievement follows another milestone earlier in the month when the bank facilitated a digital yuan transaction facilitating a settlement between Baosteel Group and Bao-trans Enterprises, marking the CBDC’s entry into the commodities sector. China, in its broader efforts to introduce international digital yuan retail payments, also emphasized its commitment through a recent partnership with the Monetary Authority of Singapore. The collaboration aims to implement a pilot program that will enable tourists to use digital yuan for tourism purposes in both countries.
Clever Robot News Desk 24th December 2023
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