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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