The digital yuan’s highest profile tests began in Shenzhen in September, when city officials held a lottery, giving away $1.5 million in 50,000 in “digital red envelopes” containing 200 yuan—about $30—usable at 4,000 merchants who signed up to accept the digital yuan. That and subsequent tests have been called wildly successful by People’s Bank of China Governor Yi gang.
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Hong Kong's central bank is working with China to test a cross-border digital currency (Photo: Wikimedia Commons)Hong Kong embracing digital yuan
The Hong Kong Monetary Authority’s chief executive said it is working with the People’s Bank of China to give the digital yuan a cross-border test
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.
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Individuals and businesses will be able to use digital yuan anywhere cash is accepted (Wikimedia Commons)Acceptance of China’s upcoming digital yuan mandatory
Businesses and individuals will be required to accept the central bank digital currency once it is launched, according to a representative of the People’s Bank of China
As a consequence of it being classified as part of the cash supply, the upcoming CBDC will have to comply with the laws that currently regulate cash. This includes the mandatory acceptance of the digital currency as a means of payment.