By the conclusion of 2024, a trade association for the world’s airlines intends to incorporate the digital yuan into its invoicing systems in order to improve payment options
The International Air Transport Association intends to integrate China’s central bank digital currency, also known as digital yuan or e-CNY, into its invoicing and settlement systems by the end of 2024. This move is indicative of the increasing prevalence of digital currencies in global finance.
Muhammad Albakri, IATA’s senior vice president for financial settlement and distribution services, underscored the necessity of adapting to the changing preferences of payment methods in a Times Aerospace report on October 29.
“With the increasing use of digital currencies, it is imperative that IATA’s industry financial settlement systems adapt to support the needs of those using our services.” – Muhammad Albakri
In response to a proposal from the China Airline Committee of the International Air Transport Association (IATA), China’s digital currency will be accessible via the China Billing and Settlement plan.
The integration of other digital currencies into IATA’s settlement systems is being investigated in addition to the digital yuan. However, no specifics or timeline for their integration have been offered.
The Renminbi Offshore was incorporated into the Currency Clearance Service by IATA earlier this year, bringing the total to 74 currencies. This change enables airlines to transfer sales funds in their preferred currencies, thereby reducing foreign exchange risks and improving cash management.
Changchun Mu, the director-general of the digital currency institute at the People’s Bank of China, declared in a column for SINA in October that the digital yuan platform had registered 180 million personal wallets and recorded a total transaction volume of ¥7.3 trillion ($1.02 trillion) in pilot regions as of July.
