Chinese Banks Promote Cross-Border Digital Yuan Spending
Chinese banks are encouraging cross-border spending with the digital yuan. Haikou, a popular tourist destination, has introduced tax-free coupons for customers who pay with digital yuan. The initiative is backed by three major state-owned banks: Industrial and Commercial Bank of China, Bank of China, and Agricultural Bank of China.
The banks have simplified the process by allowing customers to claim the vouchers in-store. Those who spend over $2,800 using their digital yuan wallets can redeem vouchers worth over $141. The promotion will run until mid-January at participating retailers.
Expansion of Cross-Border CBDC Spending in Chinese Cities
Mainland Chinese cities, including Shenzhen, are expanding options for cross-border spending with central bank digital currencies (CBDCs). Shenzhen’s Luohu District has installed 17 self-service card issuance machines for digital RMB wallets in its port area. By the end of November, 25,000 visitors had used these machines to open CBDC wallets.
The machines allow visitors to automatically open CBDC wallets and access them through smartcards and wearable devices. The People’s Bank of China (PBoC) aims to expand the application scenarios and adoption of CBDCs in the coming year while considering potential risks and challenges.
Hot Take: China Boosting Digital Yuan Adoption
China is actively promoting the use of digital yuan both domestically and internationally. By incentivizing cross-border spending with tax-free coupons and expanding options for CBDC usage in cities like Shenzhen, China aims to accelerate the adoption of digital yuan. These initiatives demonstrate the country’s commitment to advancing its central bank digital currency project and exploring new applications for its use. As China continues to make progress in this space, it sets the stage for potential collaborations and partnerships with other countries interested in exploring CBDCs.
By
By
By
By