IATA To Offer Digital Currencies In Financial Settlement Systems
KUALA LUMPUR, Oct 29 (Bernama) -- The International Air Transport Association (IATA) announced that it will offer digital currencies in the financial settlement systems it operates for the aviation industry.
The first digital currency to be offered is the digital Renminbi, which will be available in the China Billing and Settlement Plan (BSP) by year-end, it said in a statement today.
Its senior vice-president for financial settlement and distribution services, Muhammad Albakri said China is one of the most advanced countries in the world in the adoption of digital currency.
"Recognising the trend, IATA’s China Airline Committee requested for the digital Renminbi to be included in the BSP.
"This is an important development and IATA will accommodate the digital Renminbi by year-end,” he said.
Muhammad also said the association will also look into offering other digital currencies in its settlement systems based on the needs and requirements of the industry.
“The experience gained in introducing the digital Renminbi would help IATA in onboarding other digital currencies in the future,” he said.
IATA added the Renminbi Offshore (CNH) currency to its IATA Currency Clearance Service (ICCS) in July 2024, bringing the total number of currencies handled by the service to 74.
The ICCS is IATA’s global cash management system that allows airlines' treasurers to repatriate sales funds in their preferred currencies, resulting in better working capital management and reduced foreign exchange risks.
“At the heart of the integration of the digital Renminbi and all other settlement system work is a need to serve the customer and adapt to their behavioural changes in payment methods. Payment should be seamless.
"A customer shouldn’t be frustrated by not having their payment method of choice available, nor should airlines lose out on deriving the proper value from their ticket sales," added Muhammad.
-- BERNAMA