The Hong Kong-Mainland China “cross-border” digital yuan pilot is attracting significant participation from major actors in the business world, including the e-commerce behemoth JD.com and the Bank of China.
The Bank of China is one of the main state-run commercial banks on Mainland China, and JD.com is perhaps the nation’s equivalent to the online retail giant Amazon.
During the pilot, JD and its subsidiaries JD Technology and JD Global Sales will be involved. The former handles information technology initiatives, while the latter is responsible for the processing of transactions and sales for areas outside the Mainland.
According to CICC Online, this step would make JD the first large corporation located in the Mainland to facilitate the trading of digital yuan across international borders.
As part of the pilot program, “hundreds” of retailers in Hong Kong have reportedly started taking digital yuan payments. This was reported by several media sites. Customers in Hong Kong have also started using “hard” digital yuan wallets, which are now available for purchase at specialized dispensing machines. These wallets may be obtained in Hong Kong.
The Bank of China and JD.com have been running a campaign in the form of a fortunate draw or a giveaway in an effort to generate more enthusiasm for the project. As part of this promotion, thousands of “digital red envelopes” have been given away. In the Mainland, this strategy has also seen a significant amount of use.
Customers are encouraged to express their interest through their mobile devices, namely their cellphones. Individuals who are given a “red envelope” will have access to free digital yuan holdings, but they will be required to create a digital yuan wallet with the Bank of China and utilize the money to pay for products and services offered via JD’s platform.
In addition, the Bank of China has branches located in Hong Kong, and it also has a subsidiary that focuses on the Hong Kong market.
The Bank of China has published advertising materials for the digital yuan in English, with the end user audience of Hong Kong residents in mind. (Image courtesy of the Bank of China) Payments Made Across Borders Are the New Focus for China’s Digital Yuan.
Despite the fact that the People’s Bank of China (PBoC) has in the past minimized the cross-border potential of the digital yuan, as of the latter half of 2017, it has carefully began redrawing its playbook, with the Hong Kong pilot being the first step in this process. Macau, which is another area that has its own currency, is now running a trial program that is quite similar to this one.
The same news site said that “business insiders” in China anticipate “significant growth” in the nation’s cross-border payments sector throughout the course of this year. They forecast that “consumption” across international borders would increase to the tune of 244 million dollars.
One media source said that “with its smart pay advantages, the digital yuan has lots of space for expansion in the cross-border consumer industry.” This may be a reflection of recent policies from the PBoC.
Compiled by Coinbold