What: China and Singapore launched a programme where they agree to let their respective tourists pay in digital yuan.

Why it is important: New payment options can be disruptive for department stores, especially in S.E. Asia

China and Singapore are piloting a program where tourists from both countries can use China's digital currency, the e-CNY, for travel expenditures. This initiative, part of a series of agreements to strengthen bilateral ties, was announced during the annual Joint Council for Bilateral Cooperation in Tianjin. Additionally, the two nations agreed on a mutual 30-day visa-free travel arrangement.

This collaboration marks significant progress in the cross-border retail application of the digital yuan. Experts believe this could lead to its wider use in trade and other high-value transactions. The adoption of the e-CNY has been growing, with significant increases in transaction volumes and the number of merchants accepting the digital currency in pilot cities.

China has been experimenting with the international use of the e-CNY, especially considering the rising geopolitical tensions and the need for yuan internationalization. This includes multi-country trials and tests for retail use in Hong Kong, enhancing the digital yuan's potential for broader global usage.

China and Singapore agree to let their tourists pay in e-CNY