People’s Bank of China and Hong Kong to deploy the digital yuan in cross-border payments

The Hong Kong Monetary Authority (HKMA) is discussing testing the digital yuan with the People’s Bank of China. The asset is planned for use in cross-border payments, according to CoinDesk.

At present, partners are negotiating the technical aspects of the pilot program. The timeline for testing has not been disclosed.

HKMA chief Eddie Yue said the digital yuan will be on par with fiat currency. The regulator’s representative described integrating the asset into cross-border payments as an additional opportunity for citizens and businesses.

How China rose to the forefront of monetary innovation thanks to the digital yuan (DCEP)

Earlier the People’s Bank of China presented the digital yuan as legal tender, which legally offsets fiat currency.

In October, the regulator rolled out the asset in pilot transactions worth 1.1 billion yuan (~$162 million), and Shenzhen residents participated in the first distribution of coins.

Suzhou authorities in Jiangsu Province will conduct a distribution of the digital yuan on December 12.

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