China’s digital yuan will soon land in Hong Kong.
The Southern Daily made it known today that the digital yuan will be tested in the Greater Bay Area in the next few weeks.
The Greater Bay Area (GBA) may have been chosen for its size. In it are Macau, Hong Kong, Shenzhen, Guangzhou, and five other cities. It is a place where several financial and tech companies love to settle. Another reason why the GBA will be a good choice is that it inhabits up to 69 million people. The number is suitable for testing a digital currency as it is neither too big nor too small. Thirdly, economic activities are moderate with a GDP of about $1.5 trillion.
In Guangdong Province, He Xiaojun who directs the activities of the Local Financial Supervision Administration Bureau said his province is a good ground for the testing of digital yuan. The director believes that the Guangdong Province has what it takes to provide a correct feedback to the government on how ready the digital currency is for use both locally and across the border:
“Guangdong will further encourage innovation, deepen business integration with Hong Kong and Macao in virtual banking and other aspects, break through data barriers, and innovate. The use of digital currency scenarios allows modern financial technology to better serve the construction and development of the entire Greater Bay Area.”
Several tourists from different parts of the world go to the Greater Bay Area just to see Hong Kong. The city has hosted many international meetings of various sorts. On GBA’s website, it is acknowledged that Hong Kong plays an important role in its development.
The arrival of China’s CBDC in Hong Kong is taking place after the successful completion of the beta test that was done in Shenzhen a week ago to know how prepared the CBDC is for Digital Currency Electronic Payment. China’s plan is to make the Greater Bay Area a center for economic activities where the digital yuan will be spent and received by residents and visitors.
The current tension in Hong Kong didn’t prevent the authorities from carrying out their plans. The people are protesting for various reasons including the fight for democratic reforms. International banks such as Credit Suisse, Julius Baer, UBS, and HSBC that are based in Hong Kong are making efforts to know their clients who have been involved in the protest.