The MAS and the HKMA exhort the public to gift used banknotes in red packets - or go entirely digital.
This year is one of those rare years where only a few short weeks separate the end of the Western festive season and the Lunar New Year.
For the lucky child based in an Asian city that celebrates both, that not only means an inordinate amount of vacation - but that they will get their long-awaited red packets when Santa Claus is still very fresh in their minds.
Widespread Practice
The red packets, lai see in Hong Kong and hong bao in Singapore, are not limited to children. The burden of the 2,000-year-old tradition now falls largely on married couples who traditionally give them to single members of their families, including relatively distant cousins, anyone younger, and those who have provided them service over the past year.
In addition, at most banks, foreign or local, it has also become common practice for superiors, or the HR department, to pass out red packets to teams and employees.
Retail Frenzy
As part of all that, custom has it that each packet should hold a brand-new banknote neatly inserted inside, something that tends to increase activity with retail tellers and ATMs across the region at this time of year.
Regulators, however, have been trying to change mindsets by convincing the public to take a more ecological approach to the Lunar New Year holidays.
Generally Clean
This year, the Monetary Authority of Singapore (MAS) is again asking individuals to use so-called Fit notes or currency it terms «generally clean and of suitable quality for recirculation, including for festive gifting».
It says that by adopting the practice it will reduce the carbon emissions needed for the new notes. According to them, almost 2 in 3 people were already using the Fit notes last year.
Significant Increase
«Over 11.7 million pieces of Fit notes were exchanged at the banks, an increase of 5 percent from the previous LNY. This resulted in emissions savings…equivalent to the annual emissions from powering about 220 four-room public housing flats,» they indicated.
To make it easier for clients to use them, it said that DBS, OCBC, and UOB would increase the number of pop-up and branch ATMs dispensing them throughout the city-state.
Going Digital
But the MAS didn’t stop there. They also suggested the public use digital e-hong baos as a way of conveying greetings and blessings.
«Banks have enhanced their e-hong bao offerings to allow greater personalization of LNY greetings,» the MAS said.
Good as New
The Hong Kong Monetary Authority (HKMA) is on much the same tack, saying that «good-as-new» notes would be available along with brand new ones at the city’s three banknote issuers, HSBC, Standard Chartered, and Bank of China.
They also encouraged the use of electronic channels including the Faster Payment System (FPS) by way of online and mobile banking - or using other digital wallets and payment services.
Reducing Waste
«Giving electronic lai-see is simple and convenient, and will contribute to sustainable development by reducing the usage of physical red packets and banknotes,» the regulator indicated.
It added that banks and payment providers will be encouraging their use through several promotional programs.
Annual Frenzy
In contrast to the MAS, the HKMA had a uniquely Hongkonger take on the annual frenzy, telling residents there was «no need to rush» to banks to exchange the new or the good-as-new notes, as all three banks would ensure ample supplies in the weeks leading up to the festivities.
That puts another interesting caveat on the whole red packet-giving thing. Let’s hope they never use any kind of AI tech with the digital channels, as the cost of the data centers needed for such tools would likely more than erase any environmental gains from the reduced carbon emissions.
