Amid the release of BRICS Pay, China has reportedly been exploring cross-border use cases for its digital yuan. Indeed, the deputy chief executive of the Bank of China, Xing Guiwei, discussed the process of seeking out cross-border applications for the currency.
The digital yuan made headlines when PetroChina used it to settle an oil deal. Moreover, the country is now seeking ways to utilize it to greater effect. Subsequently, the entire BRICS alliance may well be leaning toward embracing digital finance amid its greater de-dollarization efforts.
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China Exploring Cross-Border Use of Digital Yuan
For much of this year, BRICS growth and de-dollarization plans have been a point of geopolitical focus. Additionally, the bloc made headway recently with the announcement of both a BRICS Pay digital financier system and the blockchain-based digital yuan.
Now, the country may be seeking to explore greater uses for the asset. Indeed, as BRICS leans into digital finance, China is seeking to explore cross-border use for the digital yuan. Speaking at the Hong Kong FinTech Week, Xing discussed the cross-border pilot projects that came to fruition in 2020. Moreover, he discussed the large-scale promotion and innovative applications it is exploring currently.
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Conversely, Reuters reported a successful early reception of the digital Yuan’s arrival. Specifically, Central Bank governor Yi Gang noted that transactions using the specific digital asset reached 1.8 trillion yuan by the end of June. Moreover, the mark is a noted increase over the 100 billion yuan that was transacted as of August of last year.
Overall, the continued development of the country’s Central Bank Digital Currency (CBDC) is important. Adoption may be just beginning, but cross-border focus is a notable sign of its perception of its future. Specifically within its most noted international alliance, the BRICS bloc.