China has completed its introductory cross-border wireless yuan trails with Hong Kong. The Hong Kong Monetary Authority and the People’s Bank of China (PBoC) have performed analytical assessments and measures on the cross-border applicability of Chinas’ Central Bank Digital Currency (CBDC), according to the director of the Peoples Bank of China Research Bureau, Wang Xin.
An increasing number of central banks are exploring the possibility of implementing a CBDC, as crypto market investments amongst retail consumers increase. Institutional participants who are also investing in cryptoassets are having a massive impact to the conversation.
Mu Changchun, the head of the PBoC’s digital currency research institute, has proposed a set of global CBDC rules last week. Mu, presenting at a Bank for International Settlements discussion, urged global financial institutions to provide national digital currencies’ global connectivity.
The latest developments represent an important update to China’s CBDC growth. This has followed the introduction of internal digital yuan trials back in April 2020, the Chinese central bank has continued to develop its CBDC as much as possible.
The development has led the PBoC to partner with other international central banks in Hong Kong, Thailand, and the United Arab Emirates to investigate the creation of a cross-border CBDC in February 2021.