The e-CNY digital renminbi wallet card, available for convenient self-service application through machines on the streets of Luohu, enables visitors from Hong Kong to obtain digital renminbi through the popular e-pay app Octopus and make purchases in the district using the digital currency.

The cross-border application of the digital renminbi in Shenzhen marks a significant breakthrough and will likely have far-reaching implications. As countries worldwide continue to explore central bank digital currencies, China is already taking proactive steps toward the cross-border application of the digital renminbi. 

Luohu's e-CNY project will gather first-hand data and experience for relevant institutions, promoting the use of cross-border digital renminbi in more scenarios at larger scopes.

The Luohu project connects the Octopus app with the digital renminbi. That makes inbound consumption "as seamless as customs clearance," as many Hong Kong residents who used it commented. It will undoubtedly foster new habits among Hong Kong residents using the digital renminbi.

The project also benefits Chinese mainland residents, as it paves the way for using the digital renminbi in Hong Kong. 

Digital renminbi cross-border payments can help merchants by reducing the cost of capital circulation. Moreover, convenient customs clearance between Shenzhen and Hong Kong could also be a new driver of cross-city spending.

As a pioneer in finance, trade, commerce and economic reforms, Luohu is the first urban district in China to complete large-scale public testing of the digital renminbi. In recent years, it has established a demonstration base for the cross-border application of the digital renminbi and built China's first digital renminbi industrial park in the Hongling emerging financial industry belt, focusing on fintech and continuing to lead innovation of the digital renminbi.

Related

Go to Forum >>0 Comment(s)