Home Editor's Pick China’s Digital Yuan Scores Taiwan First with Bond Offering

China’s Digital Yuan Scores Taiwan First with Bond Offering


China’s digital yuan, or DC/EP, has scored its first international success with a bond offering in Taiwan. The Bank of China (Taiwan) recently announced that it had issued 5 billion yuan ($728 million) of DC/EP bonds in the Taiwanese market. This marks the first time the digital yuan has been used to finance a bond offering in a different currency. It also marks a major milestone in the international expansion of the digital yuan.

The Bank of China (Taiwan) issued the bonds on Friday, which was the first time DC/EP bonds have been issued in a different currency. The bonds will mature in a year and will pay a coupon rate of 1.5 percent interest annually. The Bank of China (Taiwan) previously issued yuan-denominated bonds in Taiwan in 2021.

The offering is part of the Chinese government’s efforts to expand the use of the digital yuan beyond its borders. Beijing has been pushing the digital yuan as an alternative to the U.S. dollar, which has been in disfavor for some time in China. The digital yuan has already been tested in parts of China, and Beijing is now looking to take the currency international.

Analysts expect the digital yuan to have significant implications for global payments and finance. The digital yuan could potentially be used to facilitate cross-border payments and reduce transaction costs. It could also increase financial inclusion by providing access to digital banking services to people who may not have access to traditional banking options. Additionally, the digital yuan could also provide an alternative to volatile cryptocurrencies like Bitcoin.

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