The Digital Yuan’s First Cross-Border Crude Oil Trade

The Shanghai Petroleum and Natural Gas Exchange (SHPGX) settled its first cross-border crude oil trade using China’s digital currency, the e-yuan. This marks a milestone for the exchange and China’s efforts to expand yuan use internationally.
PetroChina International purchased 1 million barrels of crude oil yesterday, paying with the digital yuan. This was also the exchange’s first overseas oil settlement conducted in yuan, allowing faster transactions.
The SHPGX, founded in 2016, aims to become a global energy trading hub settled in yuan. This e-yuan crude oil deal is a step toward that goal and expanding yuan use in trade and finance.

The Shanghai Petroleum and Natural Gas Exchange (SHPGX) has settled its first cross-border trade using China’s digital currency, the e-yuan. This marks a milestone for both the exchange and China’s efforts to expand use of its currency internationally.

Trade Details

Yesterday, PetroChina International purchased 1 million barrels of crude oil and paid using the digital yuan. The SHPGX did not disclose the name of the seller or the amount paid in the transaction.

This was also the exchange’s first overseas oil settlement conducted in yuan. Using the digital currency allows faster, more efficient cross-border transactions.

🚨 NEWS: Digital yuan has been used in its first crude oil transaction of 1 million barrels via PetroChina International.

China continues working towards de-dollarization, pushing the yuan's role in global settlements.

Is USD's reign coming to an end? 👀 pic.twitter.com/awlLsArMP8
— BlockNews.com (@blocknewsdotcom) October 23, 2023

About the E-Yuan

The e-yuan, also called the Digital Currency Electronic Payment, was developed by China’s central bank starting in 2014. It has been piloted and tested in cities and regions across China.

The country aims to use the yuan and e-yuan more widely in international trade and finance. This transaction is a step toward that goal.

SHPGX’s Global Ambitions

Besides expanding domestic business, the SHPGX is exploring international oil and gas trading. This provides a fast, stable channel for global energy resources to enter China.

The exchange continues to pioneer yuan settlement of cross-border natural gas trades. This crude oil deal in e-yuan is its latest milestone.

SHPGX Overview

The SHPGX, founded in 2016, is registered in the Shanghai Free Trade Zone. Xinhua News Agency owns the largest stake, and energy giants PetroChina, Sinopec, and CNOOC are also major investors.

In 2021, the exchange traded over 928 billion cubic meters of natural gas. It aims to become a global energy trading hub settled in yuan.

Disclaimer: BlockNews provides independent reporting on crypto, blockchain, and digital finance. All content is for informational purposes only and does not constitute financial advice. Readers should do their own research before making investment decisions. Some articles may use AI tools to assist in drafting, but every piece is reviewed and edited by our editorial team of experienced crypto writers and analysts before publication.