A CBDC white paper was released jointly by Standard Chartered and PwC, which explored the advantages of programmable CBDC in China.
A detailed CBDC white paper was recently released by the Standard Chartered and PwC team, who aimed to convey the vast benefits programmable CBDCs had in store in China. The research was focused on the so-called Greater Bay Area of China, which consists of Hong Kong, Macau, and Guangdong Province.
The main reason for focusing on the Greater Bay Area of China (GBA) was due to the multiple currencies used by the region. Cross-border is actively carried out in the region, while the white paper claimed that the trade figure amounted to 3.8 trillion Yuan.
Thus, the Greater Bay Area of China could be a major driver for use-cases of CBDCs, claimed the paper.
Referring to the potential use cases of programmable CBDCs in the Greater Bay Area of China, the white paper said, “The successful launch of programmable use cases in the GBA could provide a foundational framework for how other CBDCs could interact in cross-border commercial scenarios. This could pave the way for a network of more interconnected and efficient economies across the globe, utilizing digital currency.”
It also touched upon the use of CBDC loyalty programs, which could incentivize small-scale retailers whose users may be unwilling to join in. The white paper said industry participants had to work collectively to increase commercial adoption broadly. It highlighted several advantages programmable CBDCs could bring to their stakeholders.