In an unprecedented event, Chinese-state-owned company PetroChina has successfully conducted its first international crude oil trade utilizing the digital yuan (e-CNY). The Shanghai Petroleum and Natural Gas Exchange (SHPGX) made the announcement, confirming that PetroChina has purchased 1 million barrels of oil. The seller’s identity and the precise value of the deal in yuan remain undisclosed, as reported by China Daily.
The digital yuan, a central bank digital currency (CBDC) issued by the People’s Bank of China, can be used for both domestic and international transactions. Its launch aimed to eliminate cash and combat money laundering and terrorist financing. According to SHPGX, the PetroChina transaction is part of the exchange’s compliance with government requirements to adopt e-CNY for cross-border trade.
Expanding International Usage of e-CNY
Notably, this isn’t the first time e-CNY has been utilized in cross-border transactions. In March, SHPGX facilitated the first yuan-based purchase of liquified natural gas between the China National Offshore Oil Corporation and France’s TotalEnergies.
Statistics from the central bank reveal that cross-border transactions with e-CNY have reached 10.16 trillion yuan ($1.36 trillion) from January to September, despite market volatility. Youxin, a senior researcher from the Bank of China, has observed its increasing prominence among international organizations. Its growing popularity in emerging economies, like Argentina, has contributed significantly. In fact, the Bank of Argentina announced in June that it would allow RMB deposits and withdrawals within its banking system.
