Mar 02, 2023
Hong Kong Citizens Unenthused by e-CNY Adoption
The Chinese government’s much-touted central bank digital currency (CBDC), the digital yuan (e-CNY), has struggled to gain traction with citizens of Hong Kong. After the installation of hard wallets for the currency, available exclusively to Hongkongers, only 625 wallets had been issued in the first four days.
The Bank of China and smart card provider Octopus Card had planned to issue 50,000 wallets by March 31, but the 20% discount on purchases from 1,400 local vendors, subsidized by the government, hasn’t been enough to convince people to adopt the currency.
The local authorities are continuing to promote the digital yuan, including the project of a SIM-card hard wallet, which would combine financial and communicational functions. This is part of a greater mission to integrate Hong Kong into the Guangdong–Hong Kong–Macao Greater Bay Area.
Adoption of the e-CNY has been slow since its introduction in October 2022. By February 2023, cumulative e-CNY transactions had only reached 100 billion yuan ($14 billion). To boost adoption, cities gave away over 180 million yuan ($26.5 million) worth of the CBDC in the form of subsidies and consumption coupons during the Lunar New Year period.
The slow adoption of the e-CNY has been a cause for concern for the Chinese government, and has led to the rise of NFTs and other web3 technologies. NFTs are being used to promote the digital yuan, and NFT marketing agencies are being hired to create campaigns to increase awareness of the currency.
Twitter NFT marketing is becoming increasingly popular, with agencies creating campaigns to showcase the benefits of the digital yuan. These campaigns often involve the sale of NFTs, which can be used to promote the currency and increase its visibility.
NFTs are also being used to reward holders of the digital yuan, with the Chinese government offering discounts and other incentives to those who use the currency. This is a great way to encourage people to use the digital yuan and increase its adoption.
The Chinese government is hoping that the use of NFTs and other web3 technologies will help to increase the adoption of the digital yuan, and ultimately help to integrate Hong Kong into the Greater Bay Area. Only time will tell if this strategy will be successful.
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