China continues to advance in the use of its digital currency Central Bank (CBDC), the digital yuan and acquired 1 million barrels of oil. It is the first time it has been used for an international transaction of that caliber.
According to the Shanghai Oil and Gas Exchange (SHPGX), the operation was carried out on October 19 by the company PetroChina International, what did he buy crude oil shipping to an unidentified company. It was that company that received the digital yuan as payment.
The amount of the operation was not specified by SHPGX either, although they specified that the settlement with the digital yuan is part of the incorporation of that asset. as a means of cross-border payment on your platform.
The implementation of payments with digital yuan on the oil commodity exchange platform, is a response to the work requirements demanded by the Shanghai Municipal Party Committee and the Municipal Government. This has allowed “expand transactions international oil and gas trade” from China, says the SHPGX.
The SHPGX argues that they have “actively explored” the international oil and gas trading business, while actively expanding the national business. This, “providing faster, more stable and efficient commercial and payment channels for international resources to enter the Chinese market.”
The buying oil with digital yuan It is framed in the de-dollarization policy of China, a country that has already carried out international transactions in hydrocarbons and derivatives. with their national currency and not with the greenback.
In March of this year, China made the first international purchase of liquefied gas paying with yuan and not US dollars. The Chinese state company, CNOOC, purchased the gas product from the French oil company TotalEnergies.
Digital Yuan: The Advancement of the CBDC
China It is one of the countries that has made the most progress in the development and implementation of its central bank digital currency. Since 2020, the Asian giant has been working on its CBDC model, a currency with which it has already A variety of retail and wholesale operations can be done.
Added to the international purchase of oil using the digital yuan, for example, is the possibility of buying and paying with the Chinese CBDC on payment platforms and applications, including WeChat and AliPay.
According to the director of the Digital Currency Research Institute of the People’s Bank of China (PBoC), Mu Changchun, the country’s commercial premises They must implement QR codes for digital yuan walletsto start receiving payments with that CBDC.
Beyond purchases with China’s CBDC, people in that country began to receive their salaries in digital yuan.
Source: Ambito
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