PetroChina Concludes Pioneering International Crude Oil Transaction Using Digital Yuan: Insights

The Chinese energy behemoth PetroChina has achieved a significant milestone by effectively conducting its first-ever global trade of crude oil using the country's official digital currency, the e-CNY, as reported by China Daily on a Saturday.

On October 18, PetroChina purchased one million barrels of crude oil, with the transaction being settled in e-CNY, also known as the digital yuan. This significant trade occurred on the Shanghai Petroleum and Natural Gas Exchange (SHPGX). The report published by the Chinese Communist Party-owned newspaper did not disclose the exact financial value of the deal or reveal the identity of the seller.

China's government appears keen to leverage the e-CNY as a means to expand the global usage of its currency, commonly known as the renminbi (RMB). Settling purchases of major international commodities such as crude oil through the digital yuan serves as a strategic step to support this international expansion.

While numerous major economies worldwide are exploring the development of their own central bank digital currencies, China's efforts have placed it at the forefront of this initiative. Transaction volumes denominated in the digital yuan reached an impressive 1.8 trillion yuan (equivalent to $250 billion) as of the end of June, making up 0.16% of the total cash in circulation.

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