The Chinese government’s beloved central bank digital currency (CBDC) project has not aroused much enthusiasm among Hong Kong citizens. In the first four days since islanders were able to access “digital yuan” (also known as “e-CNY”) hard wallets, only 625 Hong Kongers had obtained them.
As reported by the local newspaper on February 28, the city of Shenzhen installed the digital yuan hard wallet vending machines, the first of its kind in the country. Due to the city’s unique location as Hong Kong’s gateway to mainland China, the machines were programmed to exclusively serve Hong Kong citizens.
The goal of the initiative, launched by the Bank of China and smart card provider Octopus Card, was to issue 50,000 hard wallets by March 31.. However, during the first four days after the installation of the machines, customers have only requested 625 wallets.
Apparently, not even the 20% discount on purchases from 1,400 local vendors, subsidized for CBDC owners by the Government, has become a deal breaker for potential holders.
However, as the Securities Times points out, local authorities will continue their efforts to promote the digital yuan among Hong Kong citizens, including the SIM card hard wallet project, which would combine financial and communication functions. The reason lies in a greater political mission to integrate the newly independent island city into the Guangdong-Hong Kong-Macao Greater Bay Area.
The adoption of the e-CNY in the country is still quite slow, despite the efforts of the Bank of China. As of October 2022, two years after the CBDC was introduced to the market, cumulative e-CNY transactions alone exceeded 100 billion yuan ($14 billion). In February 2023, during the Lunar New Year, various cities gave away more than 180 million yuan ($26.5 million) of CBDC in programs such as subsidies and consumer coupons to boost their adoption.
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