Residents of Hong Kong can now create individual e-CNY wallets for cross-border payments using China’s experimental digital currency, according to authorities. The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) announced progress in the e-CNY pilot for cross-border payments, with the aim of expanding its scope in Hong Kong. The measure is designed to facilitate the creation and use of e-CNY wallets by Hong Kong residents, as well as the recharge of these wallets through the Faster Payment System (FPS).
This move marks the first linkage of a faster payment system with a central bank digital currency system in the world, highlighting interoperability, a key area defined in the G20 Roadmap to improve cross-border payments, according to a statement from the HKMA. The expansion of the e-CNY cross-border pilot in Hong Kong is part of the “three links, three facilitations” initiative announced by the PBoC in early 2024. Users can now set up personal e-CNY wallets in Hong Kong using their Hong Kong mobile phone numbers, enabling cross-border payments but not person-to-person transfers.
Eddie Yue, Chief Executive of the HKMA, expressed satisfaction with the expansion of the e-CNY pilot in Hong Kong, stating that it allows residents to establish e-CNY wallets locally. This move will facilitate Mainland commercial payments by Hong Kong residents, as they can now top up their e-CNY wallets at any time and anywhere without needing to open a Mainland bank account. It should be noted that investing or trading cryptocurrencies carries a risk of financial loss.
