Reportedly, the Hong Kong Monetary Authority will collaborate with the People’s Bank of China
As per reports, China will increase its central bank digital currency (CBDC), called digital yuan for including them in the Belt and Road Initiative and cross-border trades, stated Cointelegraph. Reportedly, the government have not made any official release regarding the expansion of its central bank digital currency, but it hopes to increase its demand among the people.
Sources revealed that the plan of using Chinese digital currency in cross-border trades was made in Xuzhou. As per the reports from the South China Morning Post, around 18 cross-border rail links are connected with Xuzhou city, Cointelegraph highlighted.
As reported by Cointelegraph, this new plan is made for increasing the use of digital yuan for paying taxes and other benefits for users.
“The HKMA is working with mainland’s central bank, the People’s Bank of China, to test the digital yuan as a cross-border payment tool in Hong Kong,” Darryl Chan, deputy chief executive, Hong Kong Monetary Authority, added further. Chan believes that this initiative can “improve efficiency and reduce the cost of cross-border transactions,” Cointelegraph concluded.
(With insights from Cointelegraph)
Source:financialexpress.com