A trade association for the world’s airlines is set to integrate the digital yuan into its billing systems by the end of 2024 to enhance payment options.

Integration of Digital Yuan into Airline Billing Systems

The International Air Transport Association (IATA) plans to incorporate China’s central bank digital currency (CBDC) — also known as the digital yuan or e-CNY — into its billing and settlement systems by the end of 2024. This move reflects the growing adoption of digital currencies in global finance.

Adapting to Evolving Payment Preferences

In a recent statement, IATA’s senior vice president for financial settlement and distribution services, Muhammad Albakri, emphasized the need for adaptation in response to evolving payment preferences.

“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.”

China’s Digital Currency in Airline Settlements

China’s digital currency will be available through the China Billing and Settlement Plan, following a request from IATA’s China Airline Committee. In addition to the digital yuan, IATA is exploring the integration of other digital currencies into its settlement systems, though no specific details or timelines have been provided.

Expansion of Currency Options

Earlier this year, IATA added the Renminbi Offshore to its Currency Clearance Service. This addition brings the total to 74 currencies and allows airlines to transfer sales funds in their preferred currencies. This helps manage cash better and reduce foreign exchange risks.

Digital Yuan Adoption and Transaction Volume

In October, Changchun Mu, director-general of the digital currency institute at the People’s Bank of China, disclosed that as of July, 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.

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