March 28, 2024

China Launches Hong Kong DCEP Digital Currency Test

China Launches Hong Kong DCEP Digital Currency Test

China's new digital currency will be launched in the Greater Bay Area of ​​Hong Kong. According to news.southcn.com,Bai Hexiang, President of the Guangzhou Branch of the Central Bank of China, told this initiative:

«We support the first pilot applicationdigital currency payments in the Greater Bay Area, encouraging participation from qualified financial institutions. Companies using the sharing economy platform are accelerating the use of digital currency applications in government services and expanding digital currency payment scenarios.

Chinese Digital Currency Testing (DCEP) is alreadytakes place in Shenzhen, one of the main cities in the Guangdong-Hong Kong-Macau Greater Bay Area. It is a metropolis located in the Pearl River Delta, consisting of nine cities and two Special Administrative Regions in southern China. In total, more than 56 million inhabitants live here, which is approximately equal to the population of South Korea.

In addition, some Chinese experts believethat the financial technology sector in Guangdong is mature enough to have a natural advantage in the transition from traditional currency to digital, and this could help the People's Bank of China (PBoC) spread the use of DCEP.

According to data from the Guangzhou branch of the NBK, in the first quarter of 2020, 4.5 billion mobile payments were registered in Guangdong province, worth about 12 trillion yuan.

«Guangdong will continue to encourage innovation,deepen business integration with Hong Kong and Macau in the field of virtual banking, overcome obstacles and introduce innovations. The use of digital currencies allows modern financial technologies to optimize the construction and development of the entire Greater Bay Area»- commented the director of the local financial supervision bureau of Guangdong province He Xiaojun.

As always, no specific time frame is given, but it is possible that DCEP could be launched as a common currency by the end of 2020.

China Launches Hong Kong DCEP Digital Currency Test

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