The Bank of China has successfully executed the world’s inaugural cross-border CBDC-powered precious metals transaction, specifically a gold deal valued at approximately $14.1 million. The transaction involved collaboration between the Shanghai Branch of the Bank of China, its Hong Kong branch, and the Shanghai Gold Exchange, marking a historic milestone.
China Bank Completes Precious Metal Transactions Using CBDC
As one of the major commercial banks in the Mainland, the Bank of China was among the pioneering institutions to participate in the CBDC pilot program. This achievement closely follows the recent processing by the Bank of China of a $3.4 million digital yuan payment for an iron ore transaction. The iron ore deal, representing the first cross-border commodity transaction utilizing the e-CNY, included entities from Hong Kong and mainland China.
Bank of China Secures Maiden Cross-Border CBDC Gold Transaction – Anticipating Further Deals?
This year marked a significant shift in China’s approach to the international use of the digital yuan. Contrary to the previous stance emphasizing domestic retail use, the central People’s Bank of China (PBoC) and partner banks concluded the year with a series of cross-border activities. These include trade deals in Hong Kong, along with notable developments in Singapore and Taiwan.
The PBoC has expressed intentions to leverage the e-CNY for engagements with Belt and Road Initiative (BRI) partner nations and members of the Association of Southeast Asian Nations (ASEAN). Notably, four overseas banks with a presence in China have joined the growing list of digital yuan partners, emphasizing the currency’s expanding global reach.
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