China is expanding the use case for its central bank digital currency (CBDC), known as the “digital yuan,” or e-CNY, for its projects. Silk Road (Belt and Road) and cross-border trade The digital yuan, or RMB digital, is one of the first CBDCs to be extensively developed and tested. and although it has not been officially launched yet But the government has expanded the test to cover more cities and millions of people.
With plans to promote the use of China’s digital currency in cross-border trade, the city of Xuzhou serves as the departure point for a large convoy of goods from China bound for Europe. There are 18 cross-border railways connecting the city to 21 countries in Asia and Europe, according toreportof South China Morning Post
Xuzhou is becoming a trading hub and plans to promote the use of e-CNY to pay service charges and storage charges for goods transported by cross-border rail. The trial plans to expand the use of e-CNY for tax and city utility payments in the future.
In addition to Xuzhou, the Hong Kong Monetary Authority announced that Guangdong-Hong Kong-Macau Greater Bay Area will be a testing ground for cross-border payments using digital yuan.
“The HKMA is working with the central bank of the mainland. or People’s Bank of China to test the digital yuan as a cross-border payment tool in Hong Kong,” said Darryl Chan, Deputy Chief Executive Officer of the HKMA.
The Chinese government has stepped up its CBDC efforts at a time when the international trade market is deviating from the standard of the US dollar. their nationality than the US dollar
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