Chinese Central Bank to Expand Digital Yuan Pilot in Hong Kong

[Cordillerabit]

The central People’s Bank of China says it plans to expand its “cross-border” digital yuan pilot in Hong Kong.

Per a Weibo post from the media outlet Caixin, and a report from The Paper, the Deputy Governor of the PBoC Xuan Changneng said the bank wants to “deepen the cross-border e-CNY pilot” in Hong Kong.

Xuan said doing so would “boost the convenience” of firms based both in Hong Kong and Mainland China.

He added that the PBoC would “work closely” on the matter with the Hong Kong Monetary Authority (HKMA). The latter is Hong Kong’s central bank and top financial regulator.

Xuan said the PBoC and the MKMA would “jointly promote” a range of new “policy measures” to drive CBDC adoption.

These will include new CBDC-powered financial services and cooperation measures, the Deputy Governor explained.

Source: https://cryptonews.com/news/chinese-central-bank-to-expand-digital-yuan-pilot-in-hong-kong.htm

[yhiaali3]

It seems that China has ambitious economic and political plans by linking Hong Kong to the Chinese digital yuan, because I think this decision is more political than economic.

There is no doubt that the Chinese leadership is aware of Hong Kong's economic importance to the mainland. Hong Kong has always been a very important global financial and commercial center, and it serves as the gateway to China.

Through this linkage via the Chinese digital yuan, Hong Kong's large economic network will be under the control of the central government in Beijing.

[TomPluz]

China learned the beauty of CBDC as it can be a good tool for control the government has been dreaming about for a long time. China banned Bitcoin and cryptocurrency though it is now allowing Hong Kong to engage with the crypto business...and this is actually a strategic move on the country's part. China is well-informed on the advantages of the blockchain...and with its digital yuan it can have its cake and eat it too. I am sure that China has the plan to make its Digital Yuan be more accepted by the people and businesses by providing them the infrastructure and the incentives to go onboard.

[antonyyu3]

I mean if China wants to make an impact in this area then HK might be a good place to start off. The connection between China and HK is pretty strong and HK is always the place for China to work on some pilot program and get a feel of anything new economically. And based on the past year of performance of the market both from China and HK. I think China feels the urgency to boost the economy in HK and Mainland can benefit from it.

[Kemarit]

It seems that China has ambitious economic and political plans by linking Hong Kong to the Chinese digital yuan, because I think this decision is more political than economic.

Although they are 2 separate countries, China still wielded a lot of influence on Hong Kong. And this is one example how mainland China is up to this day have control of Hong Kong and everything is still with the government in China.

There is no doubt that the Chinese leadership is aware of Hong Kong's economic importance to the mainland. Hong Kong has always been a very important global financial and commercial center, and it serves as the gateway to China.

Through this linkage via the Chinese digital yuan, Hong Kong's large economic network will be under the control of the central government in Beijing.

But if you look at it right now? China's leadership that they are in economic turmoil now. So not sure how the push of CBCD in Hong Kong will help them. I'm thinking though that they are avoiding capital flight, because the consequences of it can be significant. It may lead to a depreciation of the national currency, reduced investment, and challenges for the country's financial institutions. And China might have experiencing this for many years now and trying to stop by having the Chinese put their money on Digital Yuan.

[Z-tight]

I don't support cbdc's, though i know in the near future so many countries are going to officially have their own own digital currencies. Cbdc's aid the government in tracking and controlling the financial life of their citizens, they surely want to know who spends what, and when, and they will be able to do that so easily through cbdc's. I recommend that people use decentralized digital currencies and only their fiat currencies, cbdc's are very bad for privacy.