On Monday, Shanghai Clearing House and Interbank Market Clearing House Co., Ltd. announced that they will launch services to facilitate the use of digital yuan (RMB) in commodity trading.
This move is a significant step towards a wider adoption of digital yuan in the Chinese economy.
According to the Global Times, Shanghai Clearing House’s new venture is expected to enhance transaction efficiency and security, particularly in the commodity trading sector.
Dong Dengxin, the director of the Finance and Securities Institute at Wuhan University of Science and Technology, stated that the implementation of digital RMB in commodity trading and settlement could significantly decrease costs and risks associated with the current system.
Meanwhile, the digital yuan is gaining popularity among Chinese consumers. Reports from JD.com Inc reveal a 216% year-on-year increase in digital yuan users during the “618” (June 18) shopping festival.
Furthermore, there has been a 254% surge in transactions year-on-year, indicating growing acceptance among consumers.
China’s rapid adoption and integration of the digital yuan are part of its efforts to digitize its currency, which is expected to play a crucial role in shaping the future of finance in the region, including the Hong Kong Special Administrative Region (HKSAR).
As China progresses with its digital currency initiatives, the world is closely monitoring how these developments will impact the future of finance and commodity trading on a global scale.
Compiled by Coinbold
