The International Air Transport Association (IATA) has announced plans to integrate digital currencies into its financial settlement systems, starting with the digital Renminbi, which will be included in the China Billing and Settlement Plan (BSP) by the end of 2024.
IATA’s initiative responds to the growing prevalence of digital currencies and requests from its China Airline Committee to accommodate this payment method, recognizing China’s leadership in digital currency adoption.
Beyond the digital Renminbi, IATA is exploring the inclusion of additional digital currencies in its settlement systems based on industry needs, using insights from the integration experience to inform future offerings.
In July 2024, IATA added the Renminbi Offshore (CNH) to its Currency Clearance Service (ICCS), expanding its handling of currencies to 74, enhancing airlines’ cash management capabilities and reducing foreign exchange risks across global operations.
Muhammad Albakri, IATA’s Senior Vice President for Financial Settlement and Distribution Services shared “this is an important development and IATA will accommodate the digital Renminbi by year-end. China is one of the most advanced countries in the world in the adoption of digital currency. Recognizing the trend, IATA’s China Airline Committee requested for the digital Renminbi to be included in the BSP. Digitalisation impacts many aspects of our daily lives, including the currency we use. 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,”
