Digital yuan spending in 2024 could increase significantly as banks and the government aim to promote Chinese CBDC adoption with multiple incentives.
Cross-border digital yuan spending in China could jump hugely at the beginning of 2024. Local news reports claim the city of Haikou will offer tax-free coupons for digital yuan customers. The city’s administration might be aiming for the greater popularity of the Chinese CBDC among its residents in the current year.
Three banks in China are behind the initiative: the Bank of China, the Industrial and Commercial Bank of China, and the Agricultural Bank of China. Consumers can claim the coupons in stores till mid-January. On the other hand, they can claim the coupons through the digital yuan wallets of their respective banks. Other Chinese cities are also at the forefront of promoting the digital yuan with unique policies.
Meanwhile, multiple banks joined the Chinese CBDC pilot in December 2023. A long list of city and rural banks were a part of it. Moreover, big multinational banking corporations like Standard Chartered China are already one of the pilot’s active members.
In Hong Kong, a major crypto hub, a recent consultation paper made headlines in the crypto industry. Besides, Hong Kong has actively promoted crypto adoption in the region throughout 2023. Hence, the paper’s proposals could be a positive step for crypto adoption
The paper, focusing on stablecoin issuers, has created a legislative proposal for them to create a regulatory regime. Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury said, “With the implementation of the licensing regime for VA trading platforms from June this year, the legislative proposal to regulate FRS is another important measure facilitating Web3 ecosystem development in Hong Kong.” FRS here refers to fiat-referenced stablecoins.
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