An anonymous reader cites a CoinDesk report: Chinese oil and gas company PetroChina (0857) has achieved the first international crude oil trade using the country’s central bank’s digital currency (CBDC), e-CNY, China Daily reported SATURDAY. PetroChina purchased 1 million barrels of crude oil settled in e-CNY, or digital yuan, from the Shanghai Oil and Natural Gas Exchange (SHPGX) on October 18, according to the Chinese Communist Party-owned newspaper’s report. SHPGX did not disclose the exact value of the transaction or the identity of the seller.
The Chinese government may want to use e-CNY as a tool to expand the international use of its currency, also known as the renminbi. Its use to pay for purchases of major global commodities such as crude oil would therefore be a way to support this expansion. While almost every major economy in the world is at least considering developing a CBDC, China is comfortably among the most advanced. Transactions using currency reached 1.8 trillion yuan ($250 billion) at the end of June, with e-CNY representing 0.16% of cash in circulation.