China's E-CNY Oils the Wheels of Change As Dollar Dominance Declines

Amid the ongoing de-dollarization approach by the BRICS bloc, China has seemingly completed its first international oil transaction in the digital yuan. Indeed, Chinese oil company PetroChina had purchased 1 million barrels in a trade settled in the e-CNY at the Shanghai Petroleum and Natural Gas Exchange.

The deal is the first oil deal settled in China’s Central Bank Digital Currency (CBDC). Moreover, the move has followed similar developments for the country in its attempt to lessen the international prevalence of the US dollar. Subsequently, it allows the digital yuan to be featured in a move that could be replicated across other oil settlements.

China’s Digital Yuan Used in International Oil Settlement

The BRICS economic alliance has certainly experienced a year of growth and relevance. Moreover, its largest economy and most powerful member, China, has pushed the bloc’s policies and growth efforts. Now, it has taken a major step forward in its de-dollarization approach.

Specifically, China has completed the first international oil deal settled in the digital yuan. Moreover, the country’s CBDC, called the e-CNY, is a landmark development. Now, not only for the prevalence of digital assets but for the continued promotion of the BRICS local currencies.

PetroChina reportedly purchased 1 million barrels of crude oil in the digital yuan at the Shanghai Petroleum and Natural Gas Exchange. Subsequently, the purchase was made earlier this week and reported by the state-owned China Daily.

The Shanghai Gas Exchange did not discuss the value of the deal that was made or its seller’s identity. However, the purchase does align with the currency promotion that China has embraced throughout this year. Specifically, it has sought to widen the renminbi usage in international settlements. Therefore, lessening international reliance on the USD dollar

Additionally, the BRICS bloc has long explored the idea of digital currencies. The bloc has explored its alternative currency and that unit of value to fast-track de-dollarization. The use of the digital yuan could be one of many.

Originally published by Joshua Ramos at Watcher Guru