The International Air Transport Association has announced plans to integrate digital currencies into its aviation industry financial settlement systems.
The digital yuan will become the first digital currency accepted in IATA’s China Billing and Settlement Plan by December 2024.
IATA’s Senior Vice President for Financial Settlement and Distribution Services, Muhammad Albakri, said the move reflected changing consumer behaviour.
“Digitalization 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,” Albakri said.
The initiative followed requests from IATA’s China Airline Committee to include the digital yuan in payment options.
“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. This is an important development and IATA will accommodate the digital Renminbi by year-end,” Albakri said.
IATA has also expanded its Currency Clearance Service by adding the offshore Renminbi, bringing the total currencies handled to 74.
The clearance service allows airlines to repatriate global sales funds to their preferred currencies.
IATA will consider incorporating additional digital currencies based on industry requirements.
“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 behavioral changes in payment methods. Payment should be seamless. A customer shouldn’t be frustrated by not having their payment method of choice available,” Albakri said.
