China Looks to Ramp up ‘Cross-border’ Digital Yuan Spending

Author

Tim Alper

Author

Tim Alper

About Author

Tim Alper is a British journalist and features writer who has worked at Cryptonews.com since 2018. He has written for media outlets such as the BBC, the Guardian, and Chosun Ilbo. He has also worked...

Author Profile

Share

Copied

Last updated:

December 31, 2024 09:59 EST

Why Trust Cryptonews

Cryptonews has covered the cryptocurrency industry topics since 2017, aiming to provide informative insights to our readers. Our journalists and analysts have extensive experience in market analysis and blockchain technologies. We strive to maintain high editorial standards, focusing on factual accuracy and balanced reporting across all areas - from cryptocurrencies and blockchain projects to industry events, products, and technological developments. Our ongoing presence in the industry reflects our commitment to delivering relevant information in the evolving world of digital assets. Read more about Cryptonews

Chinese bank chiefs are looking to start 2024 by driving up “cross-border” digital yuan spending.

Per the Haikou Municipal Commerce Bureau (via Hainan News), the tourism hub of Haikou has begun issuing over $706,000 worth of “offshore tax-free coupons” for digital yuan-paying customers.

Haikou is also known as Coconut City and before the coronavirus pandemic welcomed some 83 million visitors a year.

The giveaway is the brainchild of three of the nation’s biggest state-owned banks, the Industrial and Commercial Bank of China, the Bank of China, and the Agricultural Bank of China.

🇨🇳 Banks Flock to Chinese Digital Yuan Pilot – 60 Now Offer CBDC Wallets

Nine more banks have joined China’s digital yuan pilot, bolstering the number of banks offering CBDC wallets to 60.#CryptoNews #Chinahttps://t.co/YEWou5SgYu

— Cryptonews.com (@cryptonews) December 20, 2023

The banks have attempted to remove friction for digital yuan consumers by allowing them to claim the vouchers in-store.

People using their digital yuan wallets to spend upward of $2,800 can redeem vouchers worth over $141, the banks said.

The offer will run until mid-January at participating retailers, the banks confirmed.

More Chinese Cities Aim to Expand Cross-border CBDC Spending

Elsewhere, Mainland Chinese cities are starting to offer more options for “cross-border” CBDC spending.

Cities such as Shenzhen are leading the way, targeting Hong Kong residents and overseas tourists entering the Mainland from Hong Kong.

JRJ reported that the Shenzhen Branch of the central People’s Bank of China (PBoC) said the city’s Luohu District had “deployed 17 digital RMB hard wallet self-service card issuance machines in its port area.”

The PBoC added that “as of the end of November,” a total of 25,000 visitors to Shenzhen had used these machines to open CBDC wallets.

The machines let visitors automatically open CBDC wallets. They can then access their wallets via smartcards and wearable devices.

🇨🇳 Hong Kong Firms Make First Cross-border Digital Yuan Commodity Payments

Hong Kong-based firms have made the first “cross-border” commodity payments with the Mainland Chinese digital yuan, as the CBDC takes its first international steps.#CryptoNewshttps://t.co/v6TEFa3PaK

— Cryptonews.com (@cryptonews) December 15, 2023

The city said it was working on “expanding application scenarios” for the coin and “boosting adoption” in the year ahead.

Shenzhen said it was also “fully considering” possible “risks and challenges to ensure the steady advancement of the pilot.”

Last week, the Bank of China’s Dongguan Branch unveiled the country’s first automated digital yuan wallet-opening machine for overseas passport holders.

The PBoC also seems to be readying a move that could see it expand digital yuan adoption among ASEAN trading partners.