China Could Use Digital Yuan to Promote Capital Convertibility
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China could use the digital yuan in a cross-border “regulatory sandbox” program to test capital account convertibility between Shenzhen and Hong Kong, according to a proposal by a senior central bank official.
Authorities could “explore allowing market entities with strong demand for cross-border financial services and controllable risks to use the digital yuan as a carrier in the pilot program of capital account convertibility” between the two cities, Xing Yujing, director of the People’s Bank of China’s Shenzhen branch, in an interview with Xinhua-affiliated Outlook Weekly.