Tencent, the Chinese tech giant, was revealed to be participating in the tests that the Chinese institutions have completed using Mbridge, a CBDC-enabled cross-borders settlement platform. Tencent participated through its international settlements arm Tenpay, which piloted the use case of the Chinese CBDC, the digital yuan, to settle e-commerce exports using Mbridge’s rails. Tencent Participated […]
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Chinese Gang Arrested for Exploiting Digital Yuan
In Zhejiang province, China, a criminal gang exploited digital yuan accounts to illegally cash out over 200,000 yuan (,566) within four days. The digital yuan, or e-CNY, is the People’s Bank of China’s (PBOC) central bank digital currency (CBDC), which has experienced substantial growth in usage. Adoption has reached 260 million wallets across 25 cities, […]
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HSBC China Introduces Digital Yuan Services for Corporate Clients
HSBC Bank (China) Ltd. announced on Friday the launch of digital yuan (e-CNY) services for corporate clients, becoming one of the first international banks to provide these services to both corporate and retail customers. The e-CNY, or digital yuan, is China’s central bank digital currency (CBDC) issued by the People’s Bank of China (PBOC). Following […]
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Digital Yuan App Drops ‘Pilot’ Description, Hints at Change to Production Ready Status
The digital yuan app, which services users of the Chinese CBDC, has dropped the ‘pilot’ label from its name without any announcement, prompting speculation about an upcoming move to production stages. While local Chinese news outlets explained that this change had to do with app requirements, some expect this might be a step before its […]
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China Expands Digital Yuan Pilot: Hong Kong Residents Can Now Set up E-CNY Wallets Locally
The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) have advanced the digital yuan (e-CNY) pilot for payments, aiming to increase e-CNY wallet usage in Hong Kong. Residents can now set up and top up wallets via the Faster Payment System (FPS), marking the first global linkage of a faster payment […]
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Despite $250 Billion Worth of Transactions, Digital Yuan Users Prefer Physical Cash
Some participants of China’s Central Bank Digital Currency (CBDC) pilot program, specifically state workers paid in digital yuan (e-CNY), are quickly converting their digital currency to physical cash due to concerns over its utility and lack of incentives like interest on savings. Despite China’s advancement towards becoming a cashless society, the digital yuan faces skepticism […]
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Hong Kong to Kickstart New Web3 and Digital Yuan Initiatives This Year
The city of Hong Kong has detailed the advancement of new Web3 and digital yuan initiatives as part of its 2024-2025 budget. In a speech, Hong Kong Financial Secretary Paul Chan stated that the city would expedite a Web3 sandbox for stablecoins and expand the digital yuan pilot as part of its digital finance policies. […]
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Digital Yuan Now Used to Complete Car Prepurchase Payments
The digital yuan, China’s central bank digital currency (CBDC), is being used as a security element in car prepurchase payment settlements. According to local media reports, a pilot test that allows customers to pay for their cars with digital yuan was established in early February in Shenzhen, and several customers are already purchasing their vehicles […]
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Bank of China Completes First Precious Metal Digital Yuan Settlement
The Shanghai branch of the Bank of China has completed the first settlement of precious metals using the digital yuan. The transaction, finalized on December 19, allowed the Shanghai Gold Exchange to close a million precious metal trade after receiving the funds overseas, according to local media reports.
Bank of China Completes First Cross Borders Precious Gold Transaction With Digital Yuan
The Shanghai branch of the Bank of China announced that it has completed the first precious metal settlement using the digital yuan, the Chinese central bank digital currency (CBDC). The bank worked closely with the Shanghai Gold Exchange to transact the funds received overseas with the digital yuan. The transaction involved paying million in exchange for undisclosed precious metals.
According to local media, this would be the first time the Chinese digital yuan is used to complete a fine metal transaction. A spokesperson for the Shanghai branch of the Bank of China stressed the relevance of this trade to set up Shanghai as an international financial hub. He stated:
The account will contribute financial strength to support Shanghai’s in-depth implementation of the free trade pilot zone promotion strategy and promote the quality and upgrading of the international trade center.
This is the second milestone the Bank of China has reached using the digital yuan this month. On Dec. 14, the bank facilitated a transaction between its Shanghai and Hong Kong branches, facilitating a settlement between Baosteel Group, a steel and iron company, and Bao-trans Enterprises, a manufacturer of premium steel products. The .4 million imported iron ore payment marked the debut of the digital yuan in the commodities arena.
China is also making efforts to introduce international digital yuan retail payments, as it recently announced a partnership with the Monetary Authority of Singapur (MAS) to implement a pilot program that will allow tourists to use the digital yuan for tourism purposes in both countries.
What do you think about using the digital yuan in precious metals settlements? Tell us in the comments section below.
Bank Of China Completes First Cross-Border Digital Yuan Commodities Trade
The Bank of China Hong Kong, the second largest bank in the region, has completed its first cross-border digital yuan-based trade. The transaction, finalized with its sibling bank, the Bank of China, served to receive the payment for an imported iron ore commodity bulk trade, establishing the digital yuan as an option for this kind of settlement.
Bank of China Settles .4 Million in Bulk Commodities Using the Digital Yuan
The Bank of China has opened the path for companies to settle their cross-border payments using the Chinese central bank digital currency (CBDC), the digital yuan. The Hong Kong branch of the bank, the second-largest financial institution in the region, has achieved a milestone in serving as an intermediary for the settlement of a .4 million bulk commodity payment between Baosteel group, a steel and iron powerhouse, and Bao-trans Enterprises, a manufacturer of premium steel products.
The Hong Kong subsidiary and its mainland-based branch set up digital yuan wallets to support this transaction, receiving the funds in the name of Bao-trans Enterprises as a payment for an order of imported iron ore. According to local press reports, this is the first time the financial institution has acted as an intermediary for a commodity bulk settlement using the digital yuan.
Xing Guiwei, Bank of China Hong Kong deputy chief executive, praised the virtues of the Chinese CBDC in this kind of application. For Guiwei, the digital yuan can also be leveraged for the international settlements use case in addition to the retail payments scenario.
Guiwei stressed this application contributes to extending the use of the digital yuan at an international level. He explained:
The successful trial transaction can be helpful for the normalization of digital yuan usage among corporates and the further development of yuan internationalization.
China has been advancing in the internationalization of its digital currency, as Standard Chartered started offering digital yuan exchange services in China in November, and the People’s Bank of China (PBOC) partnered with the Monetary Authority of Singapore (MAS) to allow tourists of both countries to spend digital yuan.
What do you think about using digital yuan for cross-border commodities settlements? Tell us in the comments section below.