Shenzhen’s Digital Yuan Push: Following Hong Kong’s Lead in Fintech

Shenzhen, China’s SEZ bordering Hong Kong to the south, is gearing up to boost the adoption of China’s digital RMB, mirroring similar efforts in SAR, Hong Kong. The Shenzhen Local Financial Management Bureau is seeking public feedback on a plan to support digital finance, as reported by local blockchain media outlet JinSe Finance.

In a post on social media platform X (formerly Twitter), JinSe Finance, a local blockchain-focused media outlet, highlighted that the Shenzhen Local Financial Management Bureau publicly solicited opinions on the “Implementation Opinions of Shenzhen on Supporting the High-quality Development of Digital Finance.”

According to JinSe Finance, Shenzhen authorities are working to establish digital RMB application demonstration zones, build digital RMB cross-border payment and international business centers, expand cross-border payment scenarios, and strengthen international exchange and cooperation. The authorities stated their intention to “Make good use of the Hong Kong Monetary Authority’s Fintech Regulatory Sandbox and other networking mechanisms to encourage regulatory technology projects to enter testing.”

Shenzhen also plans to leverage financial technology innovation supervision tools provided by the People’s Bank of China, Hong Kong, and Macau to “support the expansion of application promotion scope under the premise of controllable risks” and encourage regulated technology projects to enter the testing phase.

Hong Kong-Shenzhen Collaboration

Hong Kong is recognized as a crypto-friendly jurisdiction, with numerous digital asset trading platforms licensed in the region. Interestingly, Shenzhen authorities intend to collaborate with Hong Kong, promoting events such as Hong Kong Fintech Week and strengthening the Shenzhen-Hong Kong-Macao Fintech Alliance.

Read also: Hong Kong Solidifies Crypto Hub Status with Bitcoin ETF Growth

Further, Shenzhen will also debut an internship program in partnership with Hong Kong that would encourage and educate innovation in the sector while also promoting the adoption of the digital RMB.

Hong Kong’s status as a crypto hub has been solidified over the years with pro-crypto policies and a sound digital asset regulatory framework and licensing system. The SAR has invested heavily in tokenization and other blockchain projects, attempting to become a leading hub of fintech services.