Digital Yuan Adoption Expands to Hong Kong for Trade and Services
The People’s Bank of China (PBOC) is exploring the potential use of the digital yuan for settling services and commodities trades with Hong Kong.
During the Hong Kong Fintech Week conference, Di Gang, deputy director-general of the Digital Currency Institute of the PBOC, revealed this initiative, emphasizing the cooperation between Hong Kong and mainland China. This collaboration would facilitate the trade and payment of natural gas, oil, and other services using the digital yuan, providing a more efficient alternative to the costly and less efficient single payment channel.
The PBOC has been pioneering various applications to internationalize the digital yuan, including settling oil purchases and expanding its use in clearing houses. Furthermore, the digital yuan could offer Chinese companies a means to bypass economic sanctions and reduce reliance on traditional settlement channels, contributing to financial innovation and regional trade facilitation.
Clever Robot News Desk 9th November 2023
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