Bank of China’s Hong Kong arm launched a digital yuan (e-CNY) shopping festival this week. The move aims to attract more tourists and grow local consumption in Hong Kong while also driving the adoption of central bank digital currencies (CBDCs).
Over 200 Hong Kong Merchants Now Accept Digital Yuan Payments
Visitors from mainland China can now shop in Hong Kong using the digital yuan amid the launch of a CBDC shopping festival. Bank of China (Hong Kong) Limited (BOCHK), the subsidiary of China’s central bank, announced the festival’s launch after BOCHK started trials of e-CNY cross-border payments in Hong Kong in 2022.
As of July 18, holders of digital yuan wallets are allowed to make payments at more than 200 merchants in Hong Kong using China’s CBDC. In addition, consumers can receive shopping subsidies in digital yuan by scanning QR codes at specific merchant stores, BOCHK noted in the press release.
The merchant shops that allow e-CNY payments range from electronics sellers to pharmacies to supermarkets. One of the companies that joined this initiative is U Select, a Hong Kong-based supermarket chain with more than 90 stores in the city.
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BOCHK Taking Advantage of Tourist Season to Boost Digital Yuan Adoption
The expansion of e-CNY payments in Hong Kong comes amid a Chinese summer tourist season, according to BOCHK’s Chen Guang. With many tourists visiting the special administrative region, China’s central bank plans to attract more users and boost local consumption through a “cross-border shopping festival.”
BOCHK represents the first institution to participate in the cross-border e-CNY trial in Hong Kong. In December 2022, the bank rolled out the first phase of its “digital yuan exclusive experience,” allowing a limited number of BOCHK consumers to shop in the city using the digital yuan.
Digital yuan has seen strong adoption recently as China remains the leading CBDC developer globally. The Bank of China has been ramping up efforts to develop and boost the use of digital yuan in the country through initiatives such as business loans, trial expansions, partnerships with big technology firms, etc.
China has been making significant strides to develop its CBDC over the years while its doors to crypto remain firmly closed. Do you think that could change in the future? Let us know in the comments below.
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