Shenzhen’s Luohu District launches digital RMB cross-border consumption carnival

02/14/2023 22:56 • Blockchain Briefs • 111 views

It is reported that according to the information released by Shenzhen, Luohu District of Shenzhen launched a digital RMB cross-border consumption carnival, covering catering, hotels, supermarkets and other fields throughout the region. The industry generally believes that this activity is an exploration of the application of digital RMB in the cross-border field, and the future application of digital RMB in the cross-border field is worth looking forward to.

Digital RMB “test” cross-border consumption

Analysis based on this information:

Shenzhen’s Luohu District launched a digital RMB cross-border consumption carnival covering various fields such as catering, hotels, and supermarkets. This event undertakes the exploration of the digital RMB’s application in the cross-border field, and the industry agrees that this move is worth looking forward to as it might open new possibilities for cross-border payments.

The introduction of digital RMB has been a significant development in China’s financial sector, and testing its cross-border capabilities is an appropriate step. The Luohu District’s initiative is a strong push in this direction. As the Chinese tourism industry picks up pace, it will create a need for digital payment methods to conduct transactions conveniently. The Luohu District has expressed its interests in exploring such possibilities.

The digital RMB is a central bank-backed digital currency that functions like physical currency, thus facilitating transactions better than other online options. The state-run digital currency was developed in a controlled environment and primarily focuses on domestic transactions, and the recent move points to the expansion of its application further. The cross-border field is a relevant application, with its vast number of transactions and significant increase in online cross-border sales globally.

The Luohu District has collaborated with WeChat Pay HK, one of the leading payment services in Hong Kong, to make the cross-border payment experience smoother and more convenient. This move has significantly reduced transaction costs and improved payment efficiency, thus increasing the comfort of capital flow between China’s mainland and Hong Kong.

The digital RMB’s application in the cross-border field brings along many benefits, including reduced exchange rate risks, speedy transaction processing, and low transaction fees. Besides, it ensures the sovereignty of China’s currency while enabling the country to counter the challenges posed by cryptocurrency, which is rapidly gaining popularity globally.

In conclusion, the Luohu District’s digital RMB cross-border consumption carnival has led to a positive response from the industry, and its potential implications warrant attention. It can very well be the future of cross-border transactions, which would bring in more significant convenience and ease in payment methods, ultimately boosting the economy.

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Shenzhen’s Luohu District launches digital RMB cross-border consumption carnival

Digital RMB “test” cross-border consumption

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