Expanding the cross-boundary e-CNY pilot in Hong Kong

The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) have expanded the e-CNY pilot program in Hong Kong to facilitate the use of e-CNY wallets by Hong Kong residents. This expansion allows users to set up e-CNY personal wallets using their Hong Kong mobile phone numbers and enables the top-up of these wallets through the Faster Payment System (FPS). The interoperability between the FPS and the e-CNY system operated by the PBoC’s Digital Currency Institute (DCI) marks the world’s first linkage between a faster payment system and a central bank digital currency system. These advancements align with the G20 Roadmap’s objective of enhancing cross-border payments through interoperability. The introduction of the e-CNY in Hong Kong provides residents with a safe, convenient, and innovative means of conducting cross-boundary retail payments. With the ability to set up e-CNY wallets locally and top them up through the FPS, Hong Kong residents can make merchant payments in Mainland China without the need for a Mainland bank account. The HKMA and PBoC will continue to collaborate in expanding the scope and functionalities of the e-CNY pilot, promoting its acceptance among retail merchants, and exploring opportunities for corporate use cases and cross-boundary trade settlement, further enhancing the efficiency and user experience of cross-border payments in the region. Resources: https://www.hkma.gov.hk/eng/news-and-media/press-releases/2024/05/20240517-3/