China wants to bribe Hong Kong citizens with the digital yuanBeijing is trying to expand the use of digital yuan in Hong Kong through a 20% discount, contrary to unsuccessful provincial performance
China is trying to boost the digitalization of the economy in Hong Kong by offering citizens a 20% discount on payments with the digital yuan. This was reported by the South China Morning Post. It is reported that the discounts will be valid only for Hong Kong citizens and only in the southern technology center of Shenzhen (linking China and Hong Kong).
According to the publication, since the beginning of March 2023, at least 625 Hong Kong residents have opened a wallet for the digital yuan to take advantage of the discounts. However, how many of them used the digital yuan is not specified. As of 2022, the population of the special administrative center was just over 7.2 million people. How long the discount campaign will last is unclear.
China has long been trying to push its digital currency in Hong Kong. In 2020, Hong Kong's security law was passed, significantly limiting its autonomy. Already a year later, Beijing has significantly ramped up testing of the digital yuan in the region. The first phase of testing involved the Central Bank of Hong Kong, the Digital Currency Institute of the People's Bank of China, and business representatives.
The results of the testing remain unclear. However, in April 2022, the Hong Kong authorities changed their mind about rushing to digitalize the economy. Then it turned out that the public was ambivalent about the idea of a total digitalization of the economy.
