USD 14 million cross-border e-CNY gold transaction completed in Shanghai

Friday 22 December 2023 13:30 CET | News

The first cross-border settlement for precious metals using the digital yuan CBDC, known as e-CNY, was completed on 20 December 2023.


The Bank of China’s Shanghai branch successfully transferred a e-CNY 100 million (USD 14 million) settlement received overseas for gold via the Shanghai Financial Exchange International Board.

The first cross-border settlement for precious metals using the digital yuan CBDC, known as e-CNY, was completed on 20 December 2023.

Bank of China officials stated that the account will bolster financial capabilities, aiding Shanghai in fully implementing the free trade pilot zone promotion strategy. This initiative aims to enhance the quality and upgrade the international trade centre.

Bank of China Shanghai is currently one of the supporters of digital yuan pilot testing and recently facilitated the import of iron ore to China via the CBDC. The firm also partners with foreign institutions, such as France’s BNP Paribas, to develop the digital yuan.

China's CBDC progress and new App updates

China’s officials recognise the importance of CBDCs in cross-border trade. Various foreign banks have joined China’s ongoing CBDC trials, while Singapore announced that it would allow Chinese tourists to spend digital yuan inside the island country during their trips. On 1 December 2023, China signed a USD 100 million memorandum on CBDC cooperation with the United Arab Emirates.

19 December 2023, the latest update for the official digital yuan app was released. The version allows users to create a digital yuan wallet using their phone number, disable their wallet in case their phone is lost, and reset their password and private keys. Users can also bind their personal bank accounts and debit cards to purchase digital yuan in-wallet.

CBDCs and public interests

Central bank officials from De Nederlandsche Bank have discussed key aspects of retail Central Bank Digital Currencies (CBDCs) in a statement for The Paypers, emphasising the distinction between public and private money.

They highlighted the importance of digital cash in preserving public objectives such as privacy, inclusion, continuity, and autonomy in retail payments. As cash usage declines, CBDCs are seen as essential to maintain the role of public money in the digital era.

The officials also stressed that the development of retail CBDCs, like the digital euro, requires political backing to ensure public support and legal tender status. Legislations should outline measures to safeguard privacy, promote inclusivity, and maintain offline capabilities.

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Keywords: CBDC, digital currency, central bank, settlement, digitalisation
Categories: DeFi & Crypto & Web3
Countries: China
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