HKMA and PBoC expand e-CNY pilot for cross-boundary payments

This development facilitates the setup and use of e-CNY wallets by Hong Kong residents, who can now top up these wallets through the Faster Payment System (FPS). The interoperability between FPS and the e-CNY system, managed by the Digital Currency Institute (DCI) of the PBoC, represents the first linkage of a faster payment system with a central bank digital currency globally. This initiative aligns with the G20 Roadmap's focus on enhancing cross-border payments through interoperability.

The pilot expansion in Hong Kong is one of six measures announced by the PBoC under the ‘three connection, three facilitation’ initiative. Hong Kong residents can now establish e-CNY personal wallets using their local mobile phone numbers. These wallets support cross-boundary payments but not person-to-person transfers.

Users can top up their e-CNY wallets via FPS through 17 retail banks in Hong Kong. The e-CNY can be used in the Guangdong-Hong Kong-Macao Greater Bay Area (GBA) and other Mainland pilot areas. Efforts are ongoing to enhance e-CNY interoperability with traditional e-payment services in the Mainland, which will provide Hong Kong residents with more consumption options in the future.

Hong-Kong expansion

Representatives of the HKMA noted that Hong Kong is the first place outside the Mainland to allow residents to set up e-CNY wallets locally. The expanded pilot leverages FPS's 24/7 operation and real-time transfer capabilities, enabling users to top up e-CNY wallets anytime without a Mainland bank account, facilitating payments by Hong Kong residents in the Mainland. The HKMA and PBoC will continue collaborating to expand e-CNY applications, enhance wallet functionalities, and promote its acceptance among retail merchants in both regions.

The HKMA will also work with the DCI to explore upgrading e-CNY wallets through real-name verification and improving payment interoperability for better user experiences for individuals and merchants. Additionally, corporate use cases for facilitating cross-boundary trade settlement will be examined.

The e-CNY aims to provide a safe, convenient, and innovative method for cross-boundary retail payments, enhancing payment efficiency and user experience, and promoting interconnectivity within the GBA.