The International Air Transport Association (IATA), representing the world’s airlines, plans to incorporate China’s central bank digital currency (CBDC)—known as the digital yuan or e-CNY—into its billing and settlement systems by the end of 2024. This move reflects the growing trend of digital currencies in global finance.
In a report by Times Aerospace on October 29, IATA’s Senior Vice President for Financial Settlement and Distribution Services, Muhammad Albakri, highlighted the necessity of adapting to changing 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,” he stated.
The digital yuan will be made 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 also considering the integration of other digital currencies into its settlement systems, although no specific details or timelines have been announced.
Earlier this year, IATA expanded its Currency Clearance Service to include the Renminbi Offshore, bringing the total to 74 currencies. This enhancement allows airlines to transfer sales funds in their preferred currencies, improving cash management and reducing foreign exchange risks.
In related news, Changchun Mu, Director-General of the Digital Currency Institute at the People’s Bank of China, recently reported in a SINA column that as of July, the digital yuan platform had registered 180 million personal wallets and recorded a total transaction volume of ¥7.3 trillion (approximately $1.02 trillion) in pilot regions.