Blockchain and Cryptocurrency: People, Culture and Tech
While Hong Kong is part of China, it is a special administrative region, meaning it has a border and a separate central bank. Which makes it an excellent cross-border test partner for the digital currency China is testing.
Monex head Oki Matsumoto said that he appreciates Bank of Japan’s plan to study the development of a digital currency and that he believes it will help the country move toward a more efficient, digitized economy
The Shenzhen test acted as both a stress test and a marketing initiative. The City government gave away $1.5 million to 50,000 randomly selected citizens, who each received 200 yuan—about $30—usable at any of the 4,000 merchants who accept the digital yuan. The Suzhou test will include important new features that did not factor into the Shenzhen trials, most notably the ability to pay while offline.
Despite the government encouraging shoppers and retailers to embrace electronic forms of money, over 80% of consumers still rely on good old banknotes and coins for smaller purchases. Although adoption is improving among the nation’s young, adoption is happening at a glacial rate. A target has been set to increase cashless settlements to 40% by 2025. That’s hardly ambitious.
