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For the first time, China’s central bank digital currency (CBDC) has been utilized to purchase precious metals. The Bank of China successfully executed a transfer of 100 million digital yuan (e-CNY) to acquire gold through the Shanghai Stock Exchange.
The Bank of China conducted the acquisition of the precious metal using the CBDC. A report from local media indicates that this marks the inaugural cross-border transaction employing the digital yuan as part of the settlement for a gold purchase.
The Shanghai branch of the Bank of China transferred 100 million yuan ($14 million) via the e-CNY, facilitating the purchase of gold bullion through the Shanghai Stock Exchange.
A spokesperson for the Bank of China stated that the transaction involved the bank’s branches in both Shanghai and Hong Kong, which enabled the successful conversion and overseas transfer of funds. They noted that the initial outcomes of utilizing the digital yuan in cross-border transactions involving precious metals will contribute to enhancing free trade prospects in Shanghai moving forward, positioning the region as an international trade center.
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The pilot initiative for China’s CBDC is progressing actively. The digital currency is being employed for cross-border trade and payments to government employees, with major multinational financial institutions in Hong Kong, Taiwan, and the United Kingdom testing the e-CNY.
Beyond cross-border efforts, Chinese authorities are facilitating the use of the digital currency for citizens. The e-CNY can be utilized for offline transactions, purchasing securities, and participating in cash prize draws, as well as for payments through WeChat. Additionally, tourists planning to visit China can establish a digital wallet for the e-CNY and acquire the digital currency using Visa and Mastercard debit cards.
The Chinese government’s Web3 initiatives encompass more than just the active promotion of the CBDC. Authorities have consistently articulated ambitious future plans as part of the advancement of various blockchain technology sectors. According to a recent document released by China’s Ministry of Industry and Information Technology, the government has established a special committee to foster new business models centered around NFTs and dApps. This plan includes funding for research, international collaboration, and pilot projects that emphasize digital identity based on distributed ledger technology (DLT).
China’s recent technological initiatives extend well beyond the financial sector, prompting authorities to seek an increase in the number of blockchain specialists within the country. The National Blockchain Technology Innovation Center (NBTIC) was inaugurated in Beijing specifically for this aim.
Сообщение First-Ever Cross-Border e-CNY Gold Purchase появились сначала на CoinsPaid Media.
