The China Central bank is seeking to internationalize its digital currency known as ”Yuan”.
Bank for International Settlements (BIS) made this known in a report that says the China Central Bank has completed a trial of digital currency focused on cross-border transactions.
BIS added that more than 160 cross-border payments and foreign exchange transactions totaling more than $22 million were made during the trial.
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The payment was made between China, Hong Kong, Thailand, and United Arab Emirates to enable cheaper, safer, real-time cross-border payments and settlement.
This is coming after the US dollar rises sharply against other currencies. This has triggered capital outflows from emerging markets and threatened the health of the economy.
China is testing digital currencies in major cities, mostly for domestic retail payments. The Central bank has also pledged to consider cross-border payments in the digital yuan.
China has agreed and making moves in setting a global standard for fiat digital currencies as the international monetary system evolves.
Russia has also announced plans to use its digital currency, the ruble, to do business with China.
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