According to sources in the Chinese press, China inaugurated an industrial park on October 11 with the goal of fostering the ecosystem for the digital yuan. This is the first park of its kind devoted to the e-CNY, commonly known as the central bank digital currency (CBDC). The industrial park is located in the Luohu …
According to sources in the Chinese press, China inaugurated an industrial park on October 11 with the goal of fostering the ecosystem for the digital yuan. This is the first park of its kind devoted to the e-CNY, commonly known as the central bank digital currency (CBDC). The industrial park is located in the Luohu district of Shenzhen, adjacent to Hong Kong. Nine people will live there when it opens. Ten “initiatives to boost the development” of the digital yuan ecosystem, including payment methods, smart contracts, hard wallets, and digital yuan marketing, have reportedly been unveiled by the district government. Up to three years of rent-free living are among the incentives available to tenants. Startups are eligible for up to 50 million yuan ($6.9 million), while commercial banks may receive up to 20 million yuan ($2.7 million) for locating there. The total amount of government assistance is 100 million yuan ($13.7 million). Also available are loans with favorable interest rates. Hengbao, Wuhan Tianyu Information, and Lakala Payment were some of the park’s original occupants. Payment cards are among the products made by Hengbao and Tianyu. Lakala is a Visa partner and payment processor. China has implemented numerous initiatives to encourage the use of the digital yuan, which is now in the experimental phase. 26 cities are taking part in the trial, and 5.6 million businesses have accepted the CBDC. As a result of government support and advancements in technology, this figure is projected to continuously increase. Tourists now have the opportunity to connect Visa and Mastercard to their digital wallets via the digital yuan app. However, adoption is regarded as slow, with 261 million digital yuan wallets generated as of 2022.
Risk Disclaimer:
Please note that this article does not offer any instructions or suggestions regarding investment decisions. Therefore, it is essential that you carefully evaluate your financial situation and conduct thorough analysis, or seek advice from a qualified professional, before making any investment decisions.
