China and Hong Kong are testing digital yuan for cross-border payments

 

Chinese authorities announced that the next phase of testing the digital yuan for interstate payments with Hong Kong has begun.

President of the Mu Changchun People's Bank of China Digital Currency Research Institute. informed that the first phase of research involving digital currency intended for cross-border transactions with Hong Kong has been successfully completed and the next stage will be started, this time related to quick payments.

Subsequent tests will cover the Fast Payment Service (FPS) system, which is an interbank digital payment system in Hong Kong. The tests will also check the adaptability and ease of use of the digital yuan for ordinary residents.

In the future, when mainland tourists use digital yuan to make purchases in Hong Kong, the currency will be exchanged between the two wallets and local sellers will receive Hong Kong dollars, so no conversion will be necessary

Mu Changchun

Changchun also spoke about the mBridge project, which is overseen by the Bank for International Settlements and aims to build a "financial bridge" between China, Hong Kong, Thailand and the United Arab Emirates. Hong Kong's participation in this project may result in its expansion to other countries in the world. 

The digital yuan is one step away from introduction

The digital currency tested by the Chinese government will probably be the first of its kind introduced in the world. Pilot programs have been going on for more than a year and are testing the currency both in internal payments and between countries. The digital yuan has already been used in millions of transactions and its applications are constantly expanding.

The Asian region, and in particular China, appear to be the most advanced in testing new digital payment methods. European and American efforts in this direction are still at a very early stage, hence the high probability that the digital yuan will be a pioneer on a global scale.