China’s central bank digital currency (CBDC) initiative is expanding its deployment to wholesale uses cases. The Shanghai Clearing House will support digital yuan usage for commodities transactions from today. It is China’s largest central counterparty (CCP) responsible for clearing and payment for financial transactions.
While using digital yuan is not mandatory, initially the digital currency settlement service will be free to encourage adoption.
This latest announcement is for commodities, but the Shanghai Clearing House is responsible for the clearing and settlement of many financial transactions apart from stocks. So that includes bonds, interest rates swaps, foreign exchange (FX), credit and commodities. Last year the CCP cleared RMB 552.6 trillion ($76.4 trillion) in transactions.
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