China’s Digital Yuan Scores Taiwan First with Bond Offering
China’s digital yuan has scored a first in the bond market, with Taiwan’s state-run Taiwan Financial Holding Co. Ltd. (TFCC) offering bonds settled in the Chinese central bank digital currency (CBDC). The move is another way for China to expand its global penetration with the digital yuan. According to the Taiwan News, the “digital yuan bonds” were jointly issued by TFCC, Taishin Financial Holding Co. Ltd., and Huatai Financial Holdings Co. Ltd. The bonds are expected to be settled between up to 120 bondholders and will trade in the digital yuan. This bond offering is the first-ever to be settled in the digital currency and marks a major step forward for the Chinese CBDC. According to reports, the digital yuan is being tested in several countries, including Thailand and the United Arab Emirates. And while the offering is small-scale right now, it opens the door to a wider acceptance of the digital yuan in the future. It could also help deepen China’s financial ties to Taiwan, which have been strained since China began intensifying its claims over the island nation in recent years.