China and Singapore to launch cross-border digital yuan pilot

Chinese visitors will soon be able to use digital yuan for “tourist spending” in Singapore as part of a pilot to test the use of China’s central bank digital currency (CBDC) for cross-border payments.

The pilot will also enable Singaporeans to make purchases with digital yuan when they visit China, according to the Monetary Authority of Singapore (MAS).

“Following the signing of a Memorandum of Understanding on digital finance cooperation in 2020 between MAS and the Digital Currency Institute, People’s Bank of China (PBCDCI), MAS and PBCDCI are embarking on a pilot that will allow travellers from both countries to use e-CNY for tourism spending in Singapore and China. This will enhance convenience for travellers when making purchases during their overseas travel,” MAS says.

MAS announced the cross-border digital yuan pilot as part of a package of joint digital finance and capital markets initiatives to be launched by Singapore and China.

China began letting foreign visitors use credit cards to fund a digital yuan wallet in October.

China and Singapore to launch cross-border digital yuan pilot was written by Tom Phillips and published by NFCW.