Hong Kong’s finance minister made clear the need for digital transformation and confirmed that the region will conduct technical tests with the Chinese central bank’s digital yuan in 2022.

Paul Chan Mo-po – Hong Kong Finance Minister

Minister Paul Chan Mo-po share the agency will begin trials of the digital yuan in 2022. Driven by the idea of ​​”moving with the times,” Mo-po said he was aware of how enthusiastic the Chinese are about the vote discounts and coupons for consumer goods offered by e-wallets. This led to reflections on the impact of the digital renminbi, which he believed would spark public interest in digital systems.

Mo-po will then explain the voucher plan and the concerns that may arise from its use to consumers. After Mo-po has praised the use of the e-wallet system and the cashless experience, she is determined to drive the digital transformation forward. He begins the transition to the CBDC, including research and development for the digital yuan.

Given China’s determination to digitize its financial system and economy as a whole, this news comes as no surprise. The digital renminbi has been tested with great success in several provinces.

According to Mo-po, Hong Kong’s tax authorities will use the CBDC for cross-border housing, as well as for wholesale and retail use, next year. He also mentioned the introduction of the Hong Kong dollar digital currency, a digitized version of the local currency. The government is going to go through a process of cross-border payments between mainland China and Hong Kong.

The finance minister spoke about the processes in 2022, which could be the year China officially introduces the CBDC. Currently it is only being piloted at several different levels of the economy and is progressing very smoothly.

A number of tests have been carried out and the evaluation shows that it can hit the market in the next year. There is no specific date yet, but it could be very soon.

China is one of the leading countries in CBDC development while others are just starting research and development. For a long time, many governments hesitated to build a CBDC because of the novelty of the idea and the security of such a broad shift to the economy.

However, the rise of China’s CBDC appears to have spurred other countries to do the same. Now Canada, France, Japan, the European Central Bank and others are investing heavily in this endeavor. 2022 will be tested by all of these institutions and will mark an important transition to a digital economy.

Annie

According to Beincrypto

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