China Expands its Digital Currency Program to Hong Kong

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The Hong Kong Monetary Authority and the People’s Bank of China have jointly announced the expansion of the use of e-CNY in the autonomous region.

As stated by regulators, residents of Hong Kong now have the option to top up their digital yuan wallets through 17 retail banks in the jurisdiction, and can also conduct financial transactions with assets in pilot areas of mainland China.

Hong Kong was the first location to use e-CNY in cross-border transactions, as the region has its own currency, the HKD.

However, residents in the autonomous region are not allowed to make person-to-person transactions using the digital currency, but can only use it for authorized purchases of goods and services.

According to a statement, the HKMA will continue to work with DCI (Digital Currency Initiative) to explore the possibility of upgrading e-CNY wallets with real name verification and improving payment interoperability, in order to provide a better user experience for individuals and merchants.

Additionally, they also plan to explore corporate use cases for e-CNY, in order to facilitate cross-border trade settlements.