More than 200 retail outlets across Hong Kong are now welcoming payments via digital yuan, according to claims by a number of Chinese banks. This move heralds a new era in the cross-border digital currency environment. Interestingly, the list of vendors that are open to e-CNY transactions is primarily made up of businesses that mainly cater to Mainland Chinese tourists.
Among the participating vendors are big names such as Duty Zero by CDF, a liquor vendor; IW Hotel; VanGO, a chain of convenience stores; and Balabala, a children’s clothing retail store. Supermarkets, beauty shops, electronics retailers, pharmacists, and jewellery outlets have also joined the bandwagon to ease spending experience for visitors from the mainland.
Discounts as high as $14 can be enjoyed by digital yuan holders at selected retail outlets in Hong Kong. Adding more excitement, the discount offer will last till the end of August this year.
This interesting development has been driven by Bank of China, one of the largest state-run commercial banks in Mainland China. The bank has partnered with its Hong Kong branch to organize this promotional event. In order to activate discount codes, consumers from Mainland China are required to scan QR codes from their digital yuan wallets at participating stores. These coupons will be valid for 15 days from the date of redemption.
Though still in the pilot stage, the Bank of China is looking to increase its digital yuan acquisition capabilities. According to them, the peak tourist season in Hong Kong is between July and August. The bank believes that its cross-border shopping carnival will consequently result in an increased footfall and consumption. The bank has also reassured merchants that to accept CBDC payments, they only need to download a straightforward software update for their existing point-of-sale (POS) payment systems.
At the same time, it’s critical to note that digital yuan wallets are not yet officially available in Hong Kong. Before traveling, shoppers are urged to open a digital yuan wallet in the existing pilot zones. Additionally, the bank provides vendors with two settlement methods for digital yuan transactions: conversion to Hong Kong dollars or swaps for conventional yuan.
Increasing uptake of digital currency against fiat and strengthening cross-border shopping outlets grasp of the technology presents both exhilarating and challenging times ahead. We’re witnessing a payment revolution, but how merchants, banks, and consumers negotiate its intricacies is yet to be seen.
Source: Cryptonews
