Standard Chartered, PwC make case for programmable CBDC in China Greater Bay Area

British multinational bank Standard Chartered and PwC China have partnered to produce a white paper on the application of Central Bank Digital Currencies (CBDC) in China’s so-called Greater Bay Area (Guangdong, Hong Kong and Macau). Programmability makes a big difference. concluded.

The Greater Bay Area (GBA) presented an interesting test case as it has multiple currencies in multiple jurisdictions. Macau uses the Pataca, Hong Kong uses the Hong Kong Dollar, and China uses the Renminbi. In 2021, the region saw about 3.8 trillion yuan ($535 billion) of cross-border trade, according to the report.

A programmable CBDC is under investigation in Hong Kong. The report states that there are various benefits.

“A 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.”

“Wide commercial adoption will depend on joint efforts among industry players to better serve their customers,” the report added. CBDC smart contracts can be used to implement cross-border transactions, increase bill settlement and currency flexibility on supply chains, streamline services and loyalty programs through the use of a single multi-currency wallet by retailers, and more. may be introduced in

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This report explores CBDC-based loyalty programs in detail. A more user-friendly loyalty program would benefit small retailers where consumers are less likely to enroll in the program. Payment service providers may also use smart contracts for know-your-customer (KYC) processes, the report said.

#shenzhen and ＃Guangzhou 3rd and 4th after Beijing and Shanghai, all 11 cities in the world #Guangdong– Hong Kong-Macao Greater Bay Area selected in 2022 China Opportunity Cities report released by the world’s leading consulting firm @PwC. #GD updates #GBAfocus [/IC] pic.twitter.com/6KF1fkOUcH

— Guangdong Information (@iGuangdong) September 6, 2022

The Hong Kong Monetary Authority recently launched an e-HKD CBDC pilot project exploring various use cases including tokenization.

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