Why 99% of Hong Kong visitors don’t want Chinese cryptocurrencies?

Why 99% of Hong Kong visitors don’t want Chinese cryptocurrencies?

Tourists traveling from Hong Kong to China should not know about China’s CBDC. The goal is to have 50,000 wallets distributed by the end of March, but so far only 625 Hong Kong residents have accepted them.

Hong Kong visitors only

The Chinese government has placed machines on the border between China and Hong Kong. These are especially for Hong Kong residents who want to visit other parts of China. Unless you are from Hong Kong, you cannot get a hardware wallet from these machines.

These hardware wallets are not for crypto but for Chinese CBDC. This is a yuan-based digital currency authorized and administered by the Central Bank of China.

Only 625 out of 50,000 reached

On February 18, the local Luohu community set up pharmacies for these purses. Luohu is a district of Shenzhen at the crossroads of Hong Kong and the mainland.

Luohu launched the project in partnership with China’s central bank and Octopus Cards, a smart card for payments in Hong Kong. The goal was to release 50,000 yuan worth of digital hardware wallets from February 22 to March 31, but only 625 visitors have taken advantage of the offer so far, local media reported.

The propaganda machine has to work harder as only 1.25% of the target has been achieved so far.

Many steps to use digital yuan

It’s also quite a complicated process and the programmers could have spent a little more time on the user experience and streamlined it. Visitors to Hong Kong can get yuan digital wallets from the vending machines by registering with their real names.

Then they have to fill these wallets with Octopus cards. However, you need to bring it from Hong Kong or buy it online.

The bags can then be used for shopping at more than 1,400 merchants in Luohu. Users are attracted with large subsidies, receive a 20% discount on consumption and are financed by the government.

Tested in 26 digital yuan territories

This is not the only test of the digital yuan, as far as is known there are 26 provinces and cities across the country where tests are being conducted.

Despite China’s efforts to promote its CBDC, the project has had little adoption due to a limited number of use cases. In addition, there is competition from a commercial angle, the population has been using the established payment services Alipay and WeChat for years.

Red envelopes and toll roads

To turn the tide, the Chinese central bank is taking a different approach. In doing so, they return to the tradition of the red envelopes.

The e-CNY app, which has been available for download in test areas for a year, launched the so-called redcover function at the end of December, which allows users to send money to their friends. This is the digital version of the red envelopes that are handed out on special occasions or parties.

In addition, some of China’s busiest toll roads now accept the digital yuan.

Drivers can walk past the booths and hold their mobile phones against a card reader, and the charges will be deducted from their digital yuan wallet in real time. Toll booths on road routes to and from Nanjing City have all been updated. Nanjing has been one of these 26 test areas since last March.

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Source: Btc Direct

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