China's digital currency used to settle international crude oil deal: report

Quick Take

  • PetroChina has conducted the first crude oil transaction settled using China’s e-CNY central bank digital currency (CDBC), according to a report.

China's e-CNY digital currency was used to settle a large international crude oil transaction, according to a report.

The China Daily reported the transaction was for one million barrels of crude oil purchased by PetroChina on the Shanghai Petroleum and Natural Gas Exchange (SHPGX).

The SHPGX announced the digital currency transaction on Friday but did not disclose the identity of the seller or the value of the trade.

According to Chinese state media, the trade is part of the SHPGX's efforts to address a government instruction to use the e-CNY in cross-border trade.

Bank of China promotes e-CNY hard wallet


Keep up with the latest news, trends, charts and views on crypto and DeFi with a new biweekly newsletter from The Block's Frank Chaparro

By signing-up you agree to our Terms of Service and Privacy Policy
By signing-up you agree to our Terms of Service and Privacy Policy

The news comes as China's central bank progresses the infrastructure for mass adoption of its CBDC. In July, the Bank of China (BOC) announced the launch of the “e-CNY hard wallet," according to a report.

The Global Times reported that this collaborative project, involving China Telecom and China Unicom, comprises a SIM card wallet that connects users' mobile phones to their centrally controlled digital yuan wallets. The SIM card wallets can reportedly be used even if the user's phone is powered off or disconnected from the internet.

The Global Times noted that the BOC's announcement described the introduction of the e-CNY hard wallet as a means to enhance safety, reliability, and convenience in digital transactions.

The state-controlled media outlet cited a Bank of China statement that read, "SIM cards are the most widely-used secure hardware medium where customers can make payments anytime and anywhere, which reduces costs and enhances the universality of e-CNY usage.”

© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

About Author

Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].


To contact the editor of this story:
Tim Copeland at
[email protected]