PetroChina – a Chinese-state-owned oil and gas company – has achieved a historic milestone by conducting its first international crude oil trade using the digital yuan (e-CNY). This was confirmed by the Shanghai Petroleum and Natural Gas Exchange (SHPGX) on Friday, which stated they facilitated the deal of 1 million barrels of oil. The identity of the seller and the exact value of the transaction were not made public.
The e-CNY is a central bank digital currency (CBDC) issued by the People’s Bank of China with the aim of eliminating cash, as well as tackling money laundering and terrorist financing. The SHPGX mentioned that the PetroChina transaction is one of their attempts to fulfill the government’s requirement of using the e-CNY for cross-border trade.
In March, the SHPGX also made the first yuan-based purchase of liquified natural gas between the China National Offshore Oil Corporation and France’s TotalEnergies. It is estimated that cross-border transactions using e-CNY has reached 10.16 trillion yuan ($1.36 trillion) from January to September.
Youxin, a senior researcher from the Bank of China, suggests that the use of the e-CNY among international organizations is increasing due to its prevalence among emerging economies. As an example, the Bank of Argentina declared in June that it would make RMB deposits and withdrawals available within its banking system.
