Hong Kong Expands Cross-Border Digital Yuan Pilot to Include Hong Kong Residents

The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBOC) have expanded their cross-border digital yuan pilot, allowing Hong Kong residents to use e-CNY wallets.

The digital yuan, China’s central bank digital currency (CBDC), has been in development for several years, making China one of the leaders in exploring digital currencies. Users can set up e-CNY wallets with just a phone number and use them for cross-boundary payments to retailers, though not for person-to-person transfers, according to an HKMA press release on Friday. These wallets are available for use in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and other mainland China regions participating in the pilot.

By expanding the e-CNY pilot in Hong Kong and leveraging the 24x7 operating hours and real-time transfer advantages of the Faster Payment System (FPS), users may now top up their e-CNY wallets anytime, anywhere without having to open a Mainland bank account, thereby facilitating merchant payments in the Mainland by Hong Kong residents," said Eddie Yue, Chief Executive of the HKMA. Users can top up their wallets in real time through 17 Hong Kong retail banks via FPS.