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China digital currency
TechPolicy

China digital currency: Bank of China completes cross-border settlement for precious metals trading using e-CNY

  • The BOC transferred 100 million yuan from an overseas buyer, depositing the funds as digital yuan into a Shanghai Gold Exchange account
  • Since 2019, Beijing has been ramping up efforts to expand the project, officially named Digital Currency Electronic Payment, abroad

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A booth promoting the digital version of China's yuan in Beijing on September 2, 2022. Photo: AP
Coco Fengin Beijing

China has been expanding the use of its sovereign digital currency in cross-border businesses, with the state-owned Bank of China completing the first cross-border settlement for precious metals trading.

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The bank’s Shanghai branch transferred 100 million yuan (US$14 million) in cash from an overseas buyer, depositing the funds as digital yuan into an account under the Shanghai Gold Exchange, according to a Wednesday report by state-run newspaper Shanghai Securities News, citing a representative of the branch.

The settlement was co-conducted with the bank’s Hong Kong unit, the representative said.

BOC has facilitated other cross-border transactions recently, including 24 million yuan in e-CNY transactions from state-owned Baowu Group, the world’s largest steel and iron enterprise, to import iron ore, the bank announced last week. In May, it partnered with BNP Paribas to promote the digital fiat money to the French institution’s corporate clients in China.
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The wallet app of the digital yuan, launched in January 2022, received a major update in September, allowing foreigners in China to sign up using their international phone number, top up with their overseas Visa or Mastercard cards, and transfer their wallet balance back to offshore accounts.

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