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China's virtual Yuan DCEP System to be released in Hong Kong

Friday 14 August 2020 14:41 CET | News

China’s virtual yuan (CBDC), also referred to as digital currency electronic payment (DCEP) has been announced for testing in Hong Kong’s Greater Bay Area in August 2020.

The Greater Bay Area is a megapolis that includes nine major cities (Guangzhou, Shenzhen, Macau, Hong Kong, among others). It’s considered a major Asian financial and technology centre and has a combined population of around 70 million residents and GDP of about USD 1.5 trillion. Guangdong (a coastal province in South China) is expected to fulfil a key role in the (potential) international adoption of DCEP. The province will play an important part in integrating with certain aspects of Hong Kong’s financial infrastructure, particularly its virtual banking system.

Hong Kong is the most open and global city in the Greater Bay Area, hosting many different international and trade hubs. It also plays a key role in the ongoing development of the GBA while benefiting from the dual advantages of the intergovernmental system, which is referred to as ‘one country, two systems’.China’s reserve bank recently completed the final stages of DCEP beta testing, which was carried out in Shenzhen. China plans to turn the Greater Bay Area into a more prominent economic and financial hub that will promote the use of the digital renminbi as a medium of exchange.

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Keywords: China, Hong Kong, virtual yuan, DCEP System, CBDC, Greater Bay Area, digital currency, digital currency electronic payment, Guangzhou, Shenzhen, Macau, financial centre, financial infrastructure, Guangdong, South China, international adoption, virtual banking system
Categories: Banking & Fintech
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Countries: Asia
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