Standard Chartered and PwC China have collaborated to produce a white paper on the potential applications of central bank digital currency (CBDC) in the Greater Bay Area of China, which includes Guangdong Province, Hong Kong, and Macao.

The report highlights the importance of programmability in CBDCs and suggests that successful implementation in the Greater Bay Area could serve as a framework for cross-border commercial scenarios.

The report also explores the potential benefits of CBDC-based loyalty programs for smaller retailers and the use of smart contracts for Know Your Customer (KYC) processes. The Hong Kong Monetary Authority has recently launched an e-HKD CBDC pilot project that examines various use cases, including tokenization.