Hong Kong Monetary Authority Working with PBOC to Test China’s Yuan

December 7, 2020

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The city’s financial institution, HKMA or Hong Kong Monetary Authority stated it is working with the People’s Bank of China (PBOC) to examine china’s digital currency, Yuan’s use cases.


The chief executive of HKMA, Eddie Yue stated on Friday that HKMA and PBOC’s Digital Currency Institute are discussing the technical pilot testing of utilizing e-CNY for creating cross-border payments while developing the corresponding technical preparations. Yue further added, as the renminbi is currently in use in Hong Kong and the status of e-CNY is similar to cash in circulation, it will certainly offer an extra payment method to those in Mainland and Hong Kong who require to create cross-border payments. 


However, as per the statement, it is not yet a clear timeline for the official dispatch of the digital currency yuan in the state.


China has been generally centered around domestic use cases for its public virtual cash Digital Currency, Electronic Payment (DC/EP) encouraging purchasers’ retail payments. The appropriation of DC/EP in Hong Kong, one of the major monetary centers in Asia, could be important for its endeavors to improve renminbi as a payment currency in the worldwide monetary framework. 


During an administrative committee meeting in October, Hong Kong Treasury Secretary Christopher Hui said the city is generally inspired by discount and cross-outskirt computerized money use cases, a difference to DC/EP’s underlying retail-confronting use cases that are being created by the PBOC. 


One of the four significant state-possessed business banks, the Bank of China, dispatched a lottery in October. It parted with $1.5 million worth of PBOC-gave advanced yuan to urge purchasers to download the computerized wallet and use e-CNY to make payments. The preliminary was uniquely for the residents in Shenzhen, one of the nearest terrain urban areas to Hong Kong.


Image Courtesy : Pixabay

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