On Tuesday, officials stated that Hong Long plans to link community payments systems with the Chinese mainland’s virtual currency. Keep in mind that that marks the 2nd stage of testing the mainland’s crypto coin in the economic hub.
China’s electronic coin (e-CHY) is among the advanced CBDC (central bank digital currency) in major economies. According to Mainland officials, the project will focus on domestic financial services. However, cross-border services will follow in Hong Kong SAR.
Different countries across the globe are attentive to developing CBDCs to alleviate crypto-threats, speed up international and domestic transactions and modernize financial systems.
The recent trial aims to analyze how the residents will use the fastest payment system in Hong Kong to fund their digital yuan digital wallets. The current faster transaction system facilitates local payments through mobile phones.
HKMA (Hong Kong Monetary Authority) fintech officer Nelson Chow stated that the move would allow residents in the SAR region to utilize the digital yuan after crossing the border. He told sources on Tuesday when the supervisor launched various fintech initiatives.
Also read:Earlier on, a small-scale test analyzed the e-CHY wallet usage in the region.
Also, on Tuesday, HEKMA declared its plans to issue a statement sightseeing the feasibility to issue an e-HKD, a retail-oriented CBDC, within a year. The paper will focus on potential coin usage, data privacy, AML, customer protection, and others.
Previously, the regulator stated that it focuses on utilizing CBDCs to streamline international interbank transactions.
During the briefing, HKMA’s CEO stated that more people are adopting crypto payments. Moreover, more central banks explore the possibility to use CBDCs, thus the need to try whether the move to try digital coins would be successful.
HKMA’s cross-border CBDCs trial proceeds with other client-oriented projects. For instance, early in 2021, UAE central banks and China’s mainland joined a Bank of Thailand and HKMA CBDC wholesale pilot.
Keep in mind that China has been scrutinizing crypto mining activities in the region for a while. As a result, Inner Mongolia had to avoid BTC trading and mining, adhering to Beijing’s green move. Do you think that the whole thing behind crypto crackdowns was to promote the digital yuan? Some market players suggest so. What are your words? Comment below.
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