The first digital currency to be included in IATA's billing and settlement system for the aviation industry will be China's digital yuan. The International Air Transport Association (IATA) represents some 300 airlines accounting for 83% of global air traffic. The international organization just celebrated the 30th anniversary of the establishment of its China office in Beijing. The digital yuan will be accepted by the end of this year. “China has obviously led the way. We will have trial runs taking place until December. We will extend the service to other countries, if they are interested in using digital currencies as well. China paves the way for the rest of the world,” said Nick Careen, IATA’s Senior Vice President for Operations, Safety and Security. The move is expected to promote the internationalization of the digital RMB in the global aviation industry, especially in B2B applications, the Association said.
“With China set to become the world’s largest passenger market in the coming years, we look forward to deepening our partnership with the Chinese government, our member airlines and stakeholders to bring greater prosperity to the Chinese aviation market,” Careen said. With 33 member airlines in the Chinese mainland and 48 members in the North Asia region, IATA is also running pilot projects for digital upgrades of passenger and cargo transportation in the region. In addition, it is analyzing the benefits of artificial intelligence (AI), which is expected to benefit the industry’s training, schedule optimization and revenue management. The application of AI is likely to happen quickly in the next few years, IATA said. Airlines have been highly interested in exploring AI. Still, safety is the No 1 priority for the aviation industry, and it ultimately requires human beings to make the right decisions, Careen added. Meanwhile, the international air travel market has rebounded strongly after Covid-19, recovering to about 80% of capacity compared with pre-Covid levels, IATA said, as reported by the China Daily.
