China Expands e-CNY Programme to Hong Kong

The Hong Kong Monetary Authority and the People’s Bank of China have announced the expansion of the digital yuan (e-CNY) usage in the autonomous region.

According to the regulators’ statement, Hong Kong residents can now top up their wallets through 17 retail banks in the jurisdiction and conduct financial transactions with the asset in pilot areas of China.

Hong Kong has become the first location for e-CNY cross-border transactions, as the region operates its own currency — HKD.

However, residents of the autonomy cannot perform P2P transactions in digital yuan; they are only able to pay for goods and services through services authorised by the Chinese authorities.

“The HKMA will continue to work with the DCI to explore the possibility of upgrading the e-CNY wallet to higher levels through real-name verification and improving payment compatibility to ensure a more convenient user experience for individuals and merchants. Additionally, options for corporate use will be explored to facilitate cross-border trade settlements,” the statement said.

In February, the Hong Kong Chamber of Commerce urged the local government to include the possibility of issuing yuan-pegged stablecoins in the upcoming budget. Current regulations allow support for “stablecoins” only through HKD and USD.

Chinese authorities are spending millions of dollars to promote e-CNY, yet many officials receiving salaries in CBDC prefer to convert digital assets into cash.