Hong Kong tests China's digital yuan

Wednesday 9 June 2021 10:37 CET | News

Hong Kong has announced intentions to test connecting China's digital yuan with its domestic payments network, in the second stage of trials of China's digital currency in the financial hub.

China's e-CNY is one of the most advanced central bank digital currency (CBDC) projects among major economies. Chinese officials say the project will be initially domestically focused, but cross-border trials are also under way in Hong Kong.

This latest trial will explore how Hong Kong residents can top up an e-CNY digital wallet using the city's faster payment system, currently used to make domestic payments via mobile phones. An earlier small-scale trial explored using e-CNY digital wallets in Hong Kong.

The Hong Kong Monetary Authority also said it would issue a paper exploring the feasibility of issuing a retail-focused CBDC, an e-HKD, within 12 months. The paper will consider potential use cases, as well as data privacy, and anti-money laundering standards, among others.

The regulator had previously said it was focused on using CBDCs as a way of streamlining cross border interbank payments.

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Keywords: CBDC, central bank, digital currency, cross-border payments
Categories: Blockchain & Cryptocurrencies | Cryptocurrencies
Countries: Hong Kong
This article is part of category

Blockchain & Cryptocurrencies