HK looks to expand cross-border tests of digital yuan
May 14, 2021 | 12:03 am
REUTERS
HONG KONG is in talks with China to expand cross-border testing of the digital yuan after the first phase proceeded smoothly, another step toward wider adoption of the currency.
The Hong Kong Monetary Authority (HKMA) recently conducted tests with the Digital Currency Institute of the People’s Bank of China (PBoC), involving a bank designated by the mainland authority, as well as merchants and bank staff, the HKMA said in an e-mailed response to questions.
“We have tested the use of the related app, system connectivity and certain use cases such as cross-boundary purchases,” it said. “We are discussing and collaborating with the PBoC on the next phase of technical testing, including the feasibility of broadening and deepening the use of e-CNY for cross-boundary payments.”
One of the major e-commerce companies in China JD.com has started paying employees in digital yuan.
The online retailer made this known in a post while also announcing that it would be taking part in the one-year Digital Currency/Electronic Payment (DC/EP) trial show at the fourth digital China summit happening in Fuzhou. The show is slated to hold from April 25 to 26.
JD’s Active Role In Digital Yuan Trials
Since September 2020, JD has provided technology and service support for DC/EP trial programs in Suzhou, Beijing, and Chengdu. This is part of its functions under the partnership signed with the Digital Currency Institute of The People’s Bank of China (PBoC).
Bahamas, Cambodia, China Lead Global CBDC Race, UK Launches Taskforce
Source: iStock/lcva2
The Bahamas, Cambodia, and China are the three countries with the most mature central bank digital currency (CBDC) projects, as only 23% of the worldâs retail projects have reached the implementation stage, and close to 70% of wholesale projects are in pilot program phase, according to international consultancy
PwC. Meanwhile, today, the
Bank of England (BoE) and
Her Majestyâs Treasury announced the joint creation of a new Taskforce to coordinate work on the potential UK CBDC.
The Bahamas and Cambodia secured top positions on the podium as their respective CBDC projects are live, while China is currently testing its digital yuan project. More than 88% of the worldâs CBDC projects that are currently in the pilot or production phase use blockchain technology, according to data from the report, which was obtained by Bloomberg.
Bit-Yuan? China creates its own digital currency naturalnews.com - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from naturalnews.com Daily Mail and Mail on Sunday newspapers.
CBDCs: People’s Bank of China and the Hong Kong Monetary Authority Testing Digital Yuan
The
People’s Bank of China (PBoC) and the
Hong Kong Monetary Authority (HKMA) have begun testing its central bank digital currency (CBDC) or digital yuan for cross-border transfers, according to a report in SCMP.
The report quotes
Wang Xin, Head of Research at the PBoC, who apparently gave a media briefing on the digital yuan.
China has been testing a digital iteration of its currency for some time now. Reports have filtered in that it is being tested in mainland China – this most recent report focuses on cross-border transactions of the digital yuan.