Hong Kong’s Financial Secretary Paul Chan Mo-po, in a director’s essay published on the department’s website, said that the organization would begin technical tests for the digital renminbi starting next year. The financial secretary began his essay by saying that he was aware of how the Chinese public was enthusiastically using consumer vouchers and discounts from e-wallets. This motivated him to think about the effects of the digital renminbi, which he feels will feed into the public’s aforementioned interest in digital systems.
Hong Kong’s financial secretary is determined to promote digital transformation.
Financial secretary Mo-po addressed the consumer voucher plan and the concerns that may arise from its use. After praising the use of the e-wallet system and the cashless experience, he said that he is determined to promote digital transformation. He segues into the central bank digital currency, with the transformation including research and development with respect to the digital renminbi. Given China’s strong determination to digitize its financial systems and the general economy, the news is unsurprising.
Chinese CBDC has already been piloted in several provinces.
The Chinese central bank-backed digital currency digital yuan has already been piloted in several provinces, to a great degree of success by both public and governmental measures. Hong Kong’s financial authorities will use the CBDC for cross-border apartments, as well as wholesale and retail uses, according to Mo-po. He also refers to the application of a Hong Kong dollar digital currency, a digitized version of the nation’s own currency. The region will work with the country’s central bank to conduct tests for cross-border payments between Mainland China and Hong Kong. Several other central banks across countries are currently working on their CBDCs.