China and Singapore have joined forces to launch a pilot project that allows tourists from both countries to utilize China's central bank digital currency, known as the digital yuan. This initiative aims to enhance convenience for travelers when making purchases during their overseas trips. The Monetary Authority of Singapore (MAS) announced the collaboration, which is part of their efforts to expand financial cooperation with China.
The Cross-Border e-CNY Pilot
The MAS and the People's Bank of China's Digital Currency Institute (PBCDCI) have signed a Memorandum of Understanding (MOU) on digital finance cooperation. As part of this agreement, they are embarking on a pilot project that enables travelers from China and Singapore to use the digital yuan, also known as e-CNY, for tourism spending in both countries. The primary goal of this initiative is to enhance convenience for tourists when making purchases abroad.
China's Leadership in CBDC Development
China has been at the forefront of central bank digital currency (CBDC) development. The People's Bank of China (PBOC) has been actively testing its e-CNY project and has gradually expanded the pilot program's coverage. Currently, there are 26 pilot areas for digital yuan spread across China.
In July, PBOC Governor Yi Gang revealed that transactions using China's central bank digital currency had reached 1.8 trillion yuan ($250 billion) by the end of June. Additionally, Standard Chartered Bank announced in November that it had started offering digital yuan exchange services in China. Furthermore, the PBOC and the Hong Kong Monetary Authority (HKMA) have entered the second phase of integrating digital yuan for payments and cross-border transactions within Hong Kong.
The partnership between China and Singapore to enable tourists to use digital yuan for payments is a significant step towards the wider adoption of central bank digital currencies. By leveraging the benefits of digital currencies, both countries aim to enhance the convenience and efficiency of cross-border transactions, providing a seamless experience for travelers. As the digital yuan continues to expand its reach and acceptance, it has the potential to revolutionize the way people conduct financial transactions during their travels. This collaboration between China and Singapore serves as a testament to the growing prominence of digital currencies in today's global economy.
What are your thoughts on the collaboration between China and Singapore to allow tourists to spend digital yuan? Let us know in the comments section below.
Frequently Asked Questions
Should You Buy Gold?
In times past, gold was considered a safe haven for investors in times of economic trouble. Today, many people are looking to precious metals like gold and avoiding traditional investments like bonds and stocks.
The trend for gold prices has been upward in recent years but they still remain low relative to other commodities like silver and oil.
Experts believe this could change soon. They believe gold prices could increase dramatically if there is another global financial crises.
They also mention that gold is becoming more popular due to its perceived worth and potential return.
If you are considering investing in gold, here are some things that you need to keep in mind.
- Before you start saving money for retirement, think about whether you really need it. It is possible to save enough money to retire without investing in gold. However, when you retire at age 65, gold can provide additional protection.
- Second, ensure you fully understand the risks involved in buying gold. Each offers varying levels of flexibility and security.
- Last but not least, gold doesn't provide the same level security as a savings account. It is possible to lose your gold coins.
You should do your research before buying gold. If you already have gold, make sure you protect it.
Can I purchase gold with my self directed IRA?
Although you can buy gold using your self-directed IRA account, you will need to open an account at a brokerage like TD Ameritrade. If you already have a retirement account, funds can be transferred to it.
The IRS allows individuals to contribute up to $5,500 annually ($6,500 if married and filing jointly) to a traditional IRA. Individuals are allowed to contribute $1,000 each ($2,000 if married or filing jointly) to a Roth IRA.
If you do decide that you want to invest, it is a good idea to buy physical bullion and not in futures. Futures contracts are financial instruments that are based on gold's price. These financial instruments allow you to speculate about future prices without actually owning the metal. Physical bullion, however, is real gold and silver bars that you can hold in your hand.
What are the advantages of a gold IRA
It is best to put your retirement money in an Individual Retirement Account (IRA). It's not subject to tax until you withdraw it. You control how much you take each year. There are many types of IRAs. Some are better suited for college students. Others are intended for investors seeking higher returns. Roth IRAs are a way for individuals to make contributions after the age of 59 1/2, and then pay taxes on any earnings upon retirement. Once they start withdrawing money, however, the earnings aren’t subject to tax again. This account may be worth considering if you are looking to retire earlier.
Because you can invest money in many asset classes, a gold IRA works similarly to other IRAs. Unlike a regular IRA which requires taxes to be paid on gains as you wait to withdraw them, a IRA with gold allows you to invest in multiple asset classes. This makes gold IRA accounts a great choice for those who want their money to be invested, not spent.
Another benefit to owning IRA gold is the ability to withdraw automatically. This means that you don't need to worry about making monthly deposits. To ensure that you never miss a payment, you could set up direct debits.
Gold is one of today's most safest investments. Because it isn't tied to any particular country its value tends be steady. Even during economic turmoil, gold prices tend to stay relatively stable. As a result, it's often considered a good choice when protecting your savings from inflation.
- Gold is considered a collectible, and profits from a sale are taxed at a maximum rate of 28 percent. (aarp.org)
- (Basically, if your GDP grows by 2%, you need miners to dig 2% more gold out of the ground every year to keep prices steady.) (smartasset.com)
- The price of gold jumped 131 percent from late 2007 to September 2011, when it hit a high of $1,921 an ounce, according to the World Gold Council. (aarp.org)
- You can only purchase gold bars at least 99.5% purity. (forbes.com)
- Indeed, several financial advisers interviewed for this article suggest you invest 5 to 15 percent of your portfolio in gold, just in case. (aarp.org)
- 7 U.S. Code SS7 – Designation board of trade as contract marketplaces
- 26 U.S. Code SS 408 – Individual retirement funds
- Gold IRA: Add Some Sparkle To Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Guidelines for Gold Roth IRA
Start saving as soon as possible to save for your retirement. Start saving as soon as possible, usually at age 50. You can continue to save throughout your career. To ensure sufficient growth, it is vital that you contribute enough each year.
Additionally, tax-free opportunities like a traditional 401k or SEP IRA are available. These savings vehicles allow you to make contributions without paying taxes on earnings until they are withdrawn from the account. These savings vehicles can be a great option for individuals who don't qualify for employer matching funds.
The key is to save regularly and consistently over time. If you don't contribute the maximum amount, you will miss any tax benefits.
By: Kevin Helms
Title: China and Singapore Partner to Enable Tourists to Use Digital Yuan for Payments
Sourced From: news.bitcoin.com/china-and-singapore-team-up-to-allow-tourists-to-spend-digital-yuan/
Published Date: Sun, 10 Dec 2023 08:30:42 +0000
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