Chinese oil and gas company PetroChina has completed the first crude oil transaction using the country’s digital renminbi, the China Daily reported on Saturday.
PetroChina purchased one million barrels of crude oil on Oct. 18 through the Shanghai Petroleum and Natural Gas Exchange, according to the report in the state-run newspaper. The exchange didn’t disclose the value of the deal or the identity of the seller.
The transaction was in response to the Shanghai government’s requirements to use e-CNY in cross-border trading, said the exchange.
Promotion tactics have helped drive the e-CNY to the forefront of CBDCs. Transactions using the digital yuan hit 1.8 trillion yuan ($249.33 billion) at the end of June, according to the country’s central bank governor Yi Gang.
Central bank digital currencies (CBDCs) have gained increased attention in recent months, with the European Union about to push forward to the next planning phase for its potential digital euro.
While other regions move closer to their own CBDCs, the United States is waiting on the sidelines. Last week, Federal Reserve Governor Michelle Bowman said she sees more risks than rewards in potentially issuing a dollar-based CBDC.