The People's Bank of China (PBOC) recently announced the news that China has bought the first batch of oil using its digital yuan. This is an essential milestone in developing the digital currency, as it signals the increasing use and acceptance of the digital yuan in international trade and business.
The Shanghai Oil and Gas Exchange (SHPGX) recorded the first cross-border digital yuan transaction on Friday, October 20. According to Yicaiglobal, a Chinese publication, PetroChina International bought one million barrels of oil, but the seller and the transaction terms were not disclosed.
For SHPGX, this was not only the first transaction involving the digital yuan but also the first cross-border transaction using a digital currency. SHPGX is majority-owned by China Economic Information Service (CEIS), a unit of Xinhua News Agency, and other significant shareholders include PetroChina, Sinopec and CNOOC.
The PBOC has been working on the development of the digital yuan for some time, and this is a significant step in its progress. The digital yuan is expected to provide a more efficient and secure transaction system, as well as reduce transaction costs for businesses. It is also likely to increase the use of the yuan in international trade and industry.
The PBOC is also working on internationalising the digital yuan, which is expected to be used in more countries shortly. The digital yuan is expected to have a significant impact on the global economy, and it is likely to be adopted by other countries in the future.
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