China to expand CBDC use case for Belt and Road Initiative

2023/04/25 Innoverview Read

China is expanding the use cases for its central bank digital currency (CBDC), called digital yuan for its Belt and Road Initiative and cross-border trades. The digital yuan was one of the first CBDCs to be developed and widely tested. While there hasn’t been an official launch, the government has expanded its testing parameter to include multiple cities and millions of people.

A plan promoting the use of the Chinese digital currency in cross-border trade was issued in the city of Xuzhou, which serves as the departure point for numerous goods trains from China headed for Europe. There are 18 regular cross-border rail connections from the city to 21 nations in Asia and Europe, reported the South China Morning Post.

Apart from Xuzhou, the Hong Kong Monetary Authority announced that Guangdong-Hong Kong-Macao Greater Bay Area would be a testing ground for making cross-border payments using the digital yuan.