Digital Yuan , also known as China’s digital currency or DCEP project, according to the report of Southern Daily, local news agency, dated August 12; It will be released for testing in the Greater Bay Area of Hong Kong in the coming weeks .
Greater Bay Area or GBA; It is a megapolist of nine cities, including Guangzhou, Shenzhen, Hong Kong and Macau. GBA, a major financial and technology center in Asia, has a population of more than 69 million and a GDP of about $ 1.5 trillion.
He Xiaojun, director of the Guangdong Local Financial Control Administration Bureau; He stated that Guangdong will play a major role in the cross-border adoption of DCEP. He also stated that the region will be very important in terms of virtual banking in its integration with Hong Kong. The official used the following statements:
“GUANGDONG WILL FURTHER ENCOURAGE INNOVATION. IN VIRTUAL BANKING AND OTHER FIELDS, HONG KONG WILL DEEPEN BUSINESS INTEGRATION WITH MACAU, OVERCOME DATA BARRIERS AND BRING INNOVATION. THE USE OF DIGITAL CURRENCIES ENABLES MODERN FINANCIAL TECHNOLOGY TO BUILD AND DEVELOP THE GREATER BAY AREA. ”
According to the official GBA website, Hong Kong is the “most open and international region” in GBA and is home to multiple international trade centers. The website also states that Hong Kong has played an important role in the development of the GBA, and that the intergovernmental approach has “benefited from the dual advantages” known as “one country, two systems”.
Final stages of DCEP test in Shenzhen had been completed
The news comes shortly after the Chinese central bank reported last week that it had completed the final stages of the DCEP beta test in Shenzhen. China wants to transform the Greater Bay Area into a thriving economic hub that stands out as the main focus of the digital yuan.
It’s also worth noting that China’s plans to roll out the central bank digital currency, or CBDC , in Hong Kong took place amidst ongoing local protests over national security law.