Hong Kong will conduct trial of China's digital yuan in 2022

Hong Kong's Finance Minister made it clear the need for digital transformation and confirmed that the region will conduct technical trials using China's central bank digital yuan. in 2022.

Paul Chan Mo-po – Hong Kong Finance Minister

Minister Paul Chan Mo-po shared the agency will start trials of the digital yuan in 2022. Driven by the idea of ​​"catching up with the times", Mo-po said he is aware of how people Chinese people enthusiastically use coupons and consumer vouchers from e-wallets. This prompted thinking about the impact of the digital renminbi, which he felt would draw public interest in digital systems.

Mo-po then explains the coupon plan to consumers and the concerns that may arise from its use. After praising the use of the e-wallet system and the cashless experience, Mo-po is determined to promote digital transformation. He is starting the transition to CBDC, including research and development for the digital yuan.

This news is not surprising given China's determination to digitize its financial system and economy at large. The digital renminbi has been tested in several provinces, with great success.

Hong Kong's financial authorities will use the CBDC for cross-border apartments, as well as wholesale and retail use next year, according to Mo-po. He also mentioned the adoption of the Hong Kong dollar digital currency, a digitalized version of the country's currency. The government will conduct a trial of cross-border payments between Mainland China and Hong Kong.

The Finance Minister shared about the trials in 2022, which could be the year China officially launches the CBDC. Currently, it is only piloted at several different levels of the economy and progressing very smoothly.

A series of tests in this country have been conducted and evaluation shows that it can be launched next year. There is no specific date yet, but it could be very soon. They are quite confident about this decision and will definitely be pioneers.

China is one of the leading countries in CBDC development, while others are just starting to research and develop. For a long time, many governments were hesitant about building a CBDC, due to the novelty of the idea and the safety of adopting such a broad shift to the economy.

However, the rise of China's CBDC seems to have spurred other countries to do the same. Now, Canada, France, Japan, the European Central Bank and others are all investing heavily in the cryptocurrency industry. 2022 will see the most convincing tests from all of these entities and mark an important transition towards a digital economy, digital civilization.