Apr 25, 2023
Digital Yuan Promoted for Cross-Border Trade
As the world of finance moves away from the U.S. dollar and towards digital currencies, China is leading the way in promoting the use of its central bank digital currency (CBDC) known as the digital yuan or e-CNY. The Chinese government has been testing the digital yuan in multiple cities and with millions of people, and has now announced a plan to promote the use of the digital yuan in cross-border trade as part of its Belt and Road initiative.
Xuzhou city, the departure point for many goods trains from China to Asia and Europe, is one of the cities that will be promoting the use of the digital yuan. The plan includes the use of e-CNY to pay for services and storage charges for goods carried by cross-border trains, and in the future, to pay taxes and utility services in the city.
The Hong Kong Monetary Authority has also announced that the Guangdong-Hong Kong-Macau Greater Bay Area will be a testing ground for making payments using digital yuan. Darryl Chan, the HKMA deputy chief executive, said that the HKMA is working with the People’s Bank of China to test the digital yuan as a cross-border payment tool in Hong Kong. He also added that another cross-border project involving Thailand and the United Arab Emirates is being looked into by the HKMA, China, and two other nations in order to “improve efficiency and reduce the cost of cross-border transactions”.
The Chinese government has been actively promoting the use of its CBDC in order to facilitate international trade. Recently, China has completed multiple trade treaties with countries such as Russia and India, using their national currency instead of the U.S. dollar.
The use of digital currencies is also gaining momentum in the world of NFTs (non-fungible tokens). NFTs are unique digital assets that can be used for a variety of purposes, from digital art to collectibles. With the rise of the NFT market, many companies are now looking to NFTs for promotional and marketing purposes. A number of NFT marketing agencies have sprung up to help companies promote their NFTs on social media platforms such as Twitter, and to help them sell NFTs.
The use of digital currencies and NFTs is becoming increasingly popular, and it appears that China is at the forefront of this trend. By promoting the use of its digital yuan in cross-border trade and encouraging the use of NFTs for promotional and marketing purposes, China is showing the world that it is taking a leading role in the digital currency and web3 space.
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