Amidst the mainstream adoption of digital assets, Hong Kong’s Financial Paul Chan Mo-Po wrote in his essay that the city would soon start technical tests of the digital renminbi. The essay was published on the department’s official website, which was led by the idea of “keeping abreast of the times.”
He argued in his essay that the increasing use of e-vouchers in mainland China prompted him to talk about the potential benefits of digital token. Apart from praising the cashless experience, Mo-Po vowed to promote the digital revolution.
Additionally, HK’s financial secretary further discussed the consumer voucher plan and the potential problems that might arise.
Not An Unusual Development
Given the renewed push from the Chinese officials to strengthen its digital currency and transform all sectors of its economy, Mo-Po’s announcement was not an unusual development.
Besides that, the currency has already been tested in numerous other provinces, with officials describing the initial projects as a success following appraisal from the public. As per the territory’s financial secretary, the territory will use digital currency for retail use, wholesale, and, most important, cross-border payments.
Plus, Hong Kong’s officials will work with the nation’s central bank to secure payments between the territory and mainland China.
Chinese Digital Currency Could Launch in 2022
Mo-Po wrote of trials in 2022, which means that this could be when the Asian nation launches its digital token. As of now, it is undergoing limited trials in several provinces across the country. Although no concrete data has been provided so far, the trials and appraisals from the authorities suggest that it could launch next year.
Over the last few years, governments from around the world were reluctant about the CBDCs. But China has been working on it for a couple of years and became a frontrunner in developing one.
China’s performance has prompted many other countries, including the US, Canada, Japan, France, and others, to invest resources to conduct studies on the potential use of digital currency. Experts suggest that given the growing interest of governments, the next year could be the beginning of CBDCs of numerous countries.