IATA to offer digital currencies in its financial settlement systems

It will being offering the digital renminbi in the China Billing and Settlement Plan.

The International Air Transport Association (IATA) plans to offer digital currencies in the financial settlement systems it operates for the aviation industry.

To start, IATAwill begin offering the digital renminbi in the China Billing and Settlement Plan (BSP) by end-2024.

IATA’s China Airline Committee requested that the digital renminbi be included in its plan, said Muhammad Albakri, IATA’s senior vice president for financial settlement and distribution services.

“The experience gained in introducing the digital Renminbi will help IATA in onboarding other digital currencies in the future,” said Albakri.

“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,” said Albakri on IATA’s decision to begin offering digital currencies.

IATA is examining the potential to offer other digital currencies in its settlement systems based on the needs and requirements of the industry.  

Earlier in July 2024, IATA had added the Renminbi Offshore (CNH) currency to its IATA Currency Clearance Service (ICCS). IATA’s global cash management system. The service now handles 74 currencies.