Bank of China Shanghai, together with Shanghai Gold Exchange (SGE), has successfully completed a 100 million yuan cross-border digital RMB settlement in precious metal transactions.

This marks the first transaction in the domain of cross-border digital yuan (e-CNY) payments in the precious metals market.

A representative shared:

"We worked in tandem with Bank of China's Shanghai RMB Trading Business Headquarters and Bank of China Hong Kong to execute this transaction. The funds received from overseas were seamlessly transferred into Shanghai Gold's international board free-trade RMB account using digital RMB payment. This effort contributes financial strength to support Shanghai's deepening implementation of the free trade experimental zone strategy and facilitates the enhancement of the international trade center.@

Digital Yuan

This isn't the first instance where Bank of China Shanghai facilitated trade using e-CNY.

The bank successfully utilised the digital currency to pay import iron ore fees for China Baowu Steel Group Corp (Baowu), achieving the "first transaction" in cross-border digital yuan for the bulk commodity sector.

Additionally, the bank supports the local project of BNP Paribas (China), providing systematic support for foreign financial institutions that use digital yuan in their business, ostensibly to meet a surging demand for digital yuan related transactions.

China's CBDC Project

This is just part of China's continued effort in blockchain technology. Just this month, Singapore and China initiated a cross-border pilot program.

Aimed at supporting the digital yuan, it was a joint effort between the Monetary Authority of Singapore (MAS) and the People's Bank of China's Digital Currency Institute (PBCDCI).

The initiative seeks to streamline transactions for tourists visiting both nations.