China, Singapore to let each other’s tourists pay with digital yuan as Beijing seeks to globalise its e-CNY currency
- The pilot was announced at the annual Joint Council for Bilateral Cooperation in China’s northern coastal metropolis Tianjin
- The use of digital yuan for small transactions can pave the way for its application in trade and other high-value scenarios, one expert says
Tourists from China and Singapore will be able to pay with the e-CNY when travelling to both countries as part of a new pilot programme, in a breakthrough for Beijing’s efforts to promote the cross-border use of the digital yuan.
The Monetary Authority of Singapore said in a statement that its project with the Digital Currency Institute of the People’s Bank of China (PBOC) would allow travellers from both countries to use the digital version of the Chinese currency in tourist spending.
Authorities in Singapore said the scheme was expected to “enhance convenience for travellers when making purchases during their overseas travel”, without disclosing further details.
The pilot forms part of a series of initiatives announced by the two governments on Thursday at the annual Joint Council for Bilateral Cooperation in China’s northern coastal metropolis Tianjin.
During the event, the two countries also agreed to introduce a mutual 30-day visa-free travel arrangement, one of 24 deals signed to boost bilateral ties.
The new digital-yuan collaboration represents a great opportunity for the cross-border retail use of e-CNY, according to Richard Turrin, independent financial technology consultant and author of Cashless: China’s Digital Currency Revolution.
