China, Malaysia Complete First Outbound Digital Yuan Trade Payment
China has completed its first outbound cross-border payment using the digital yuan (e-CNY) for Malaysian durian imports, demonstrating faster and cheaper trade settlements for perishable goods.
First Outbound e-CNY Transaction
China has completed its first outbound cross-border payment using the digital yuan (e-CNY), its central bank digital currency (CBDC). The transaction settled a 43,000 yuan (US$6,360) import of Malaysian durians. China Construction Bank's Xiamen branch processed the payment, coordinating with its Labuan branch in Malaysia. This direct e-CNY payment allowed a Chinese importer to purchase fresh durians. This transaction follows an inbound e-CNY trial conducted in January, completing a bilateral digital yuan settlement loop.
Faster, Cheaper Settlements
The e-CNY settlement mechanism significantly reduces transaction times. It cuts clearing time to approximately 30 minutes through direct bank-to-bank ledger transfers. This process bypasses intermediary clearing banks. In contrast, conventional cross-border settlements via the Swift banking network typically cost foreign trade firms $25 to $35 per transaction. These traditional methods also incur clearing fees exceeding 6% and take one to three business days to complete, Xinhua Finance stated. Malaysian recipients can also convert digital yuan directly into ringgit without additional fees.
Durian Trade Surges
This payment aligns with Malaysia's efforts to expand durian exports to China. China represents the world's largest market for the fruit. China imported a record $7 billion worth of durians in 2024, triple the value recorded in 2020. Over 90% of global durian exports now ship to the Chinese market. Malaysia exported $30.26 million worth of fresh durians to China in the first six months of 2026, a 342% increase from the previous year, the Bangkok Post reported. This surge follows a trade protocol signed between the two countries in June 2024. Malaysia aims to increase its total durian exports to China to over 900 million ringgit ($220 million) annually by 2030.
This successful e-CNY transaction demonstrates a practical application for central bank digital currencies in international trade. It particularly benefits perishable agricultural products like durians, where faster settlements reduce costs and preserve freshness. Reduced settlement times and fees offer tangible advantages for businesses engaged in cross-border trade with China. The development also reveals China's continued push for broader e-CNY adoption in its trade relationships. Companies dealing with Chinese suppliers or customers should monitor further e-CNY integration into regional payment systems.
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