The post Hong Kong Tests China’s Digital Yuan (e-CNY) for Residents appeared on BitcoinEthereumNews.com.

Hong Kong pilots China’s digital yuan (e-CNY) for residents Residents have a 50,000 yuan annual limit China aims to expand e-CNY’s role in global transactions Hong Kong launched a pilot program allowing residents to use China’s CBDC, the e-CNY, for the first time outside mainland China. This initiative marks a significant step in China’s efforts to internationalize the e-CNY and potentially increase the yuan’s role in global transactions, according to Bloomberg reports. Residents within designated pilot areas can now create e-CNY wallets using their local mobile phones through participating banks like Bank of China and Industrial and Commercial Bank of China. The program also allows users to top up their wallets via Hong Kong’s Faster Payment System (FPS), facilitating cross-border payments within the Greater Bay Area and other pilot regions in mainland China. Speaking on the development, Eddie Yue, chief executive of the Hong Kong Monetary Authority, noted that Hong Kong citizens can load their wallets via the local FPS payment system, enhancing cross-border transactions with mainland China.  “We will continue to work closely with the People’s Bank of China to gradually expand the application of e-CNY, enrich the range of functionalities” and promote the acceptance of the digital yuan by more retail merchants in both Hong Kong and China,” Yue asserted. While adoption remains limited due to existing digital payment options and security concerns, the e-CNY user base has grown to 260 million since its initial pilot in 2020. This growth aligns with China’s broader ambition to internationalize the yuan, as evidenced by the increasing use of yuan-denominated payments reported by Swift in recent years. Howard Lee, Deputy Chief Executive of the HKMA, clarified that tourists can also utilize e-CNY for transactions within Hong Kong. However, Hong Kong residents are subject to a spending limit of 50,000 yuan annually.…

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Filed under: News - @ May 18, 2024 12:04 am