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.
The International Air Transport Association plans to incorporate China’s central bank digital currency — also known as digital yuan or e-CNY — into its billing and settlement systems by the end of 2024, reflecting the growing adoption of digital currencies in global finance.
In a Times Aerospace report on Oct. 29, 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.”
Muhammad Albakri
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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, but no details or timeline for their integration have been provided.
Earlier this year, IATA added the Renminbi Offshore to its Currency Clearance Service, bringing the total to 74 currencies and allowing airlines to transfer sales funds in their preferred currencies, which helps manage cash better and reduce foreign exchange risks.
In October, Changchun Mu, director-general of the digital currency institute at the People’s Bank of China, disclosed in a column for SINA 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.
Read more: Hong Kong debuts China’s digital yuan pilot, prohibits peer-to-peer transfers
