The Shanghai Petroleum and Natural Gas Exchange (SHPGX) reports the groundbreaking use of the digital yuan (e-CNY) for the first time in settling a one-million-barrel oil transaction. This marks a significant step in international trade and the de-dollarization process.
In a momentous development, the digital yuan, also known as e-CNY, has made its debut in settling a cross-border oil transaction. The Shanghai Petroleum and Natural Gas Exchange (SHPGX) revealed that PetroChina International successfully purchased one million barrels of crude oil on October 19 using the digital yuan.
This pioneering move comes as a response to a call by the Shanghai Municipal Party Committee and Municipal Government to apply China’s central bank digital currency (CBDC) to international trade. It represents a significant stride in the adoption of the digital yuan and the nation’s aim to de-dollarize its economy, as noted by China Daily, a state-controlled media outlet.
#DEDOLLARIZATION DAILY: 💥PETRODOLLAR SHOCK💥
Shanghai Oil, Gas Exchange Settles First Cross-Border Trade in E-Yuan#DigitalYuan is a game changer!#fintech #finserv@psb_dc@efipm@baoshaoshan@thecyrusjanssen@lajohnstondr@Kathleen_Tyson_@DOualaalouhttps://t.co/8qT4Oq2X1o
— Richard Turrin (@richardturrin) October 22, 2023
While the specifics of the seller and the transaction price remain undisclosed, it’s worth highlighting that this achievement underlines the growing importance of the yuan in global markets and the ongoing shift away from the U.S. dollar. In the first three quarters of 2023, the use of the yuan in cross-border settlements surged by 35% year-on-year, reaching a substantial $1.39 trillion, according to China Daily.
This marks a historic milestone in the utilization of the digital yuan and reinforces China’s determination to establish itself as a key player in the international financial landscape.
