Hong Kong has become the first territory outside mainland China where users can open digital e-CNY (digital yuan) wallets. The Hong Kong Monetary Authority (HKMA) announced that permanent residents and foreigners residing in Hong Kong can now open e-CNY wallets using their local mobile numbers.
These wallets provide Hong Kong residents and foreign citizens with a secure and convenient method for cross-border payments, especially when traveling within the Greater Bay Area, which includes Hong Kong, Macau, and nine cities in Guangdong province. Howard Lee, Deputy Chief Executive of HKMA, noted that the primary goal of the digital yuan is to offer Hong Kong residents a safe and convenient option for cross-border payments.
Currently, about 300 retail outlets in Hong Kong accept e-CNY payments, with wallet balances limited to ¥10,000 ($1,380), single transactions to ¥2,000, and an annual spending limit of ¥50,000. Users can top up their wallets through Hong Kong’s Faster Payment System (FPS), integrated with the e-CNY payment infrastructure.
HKMA and the People’s Bank of China have expanded the scope of the e-CNY pilot project in Hong Kong, providing local businesses and foreigners with basic capabilities to open digital yuan wallets, transfer funds, and redeem them. It is expected that the use of CBDC (central bank digital currency) will help reduce cross-border transaction costs and improve transaction efficiency.
According to the latest data published by the People’s Bank of China, as of the end of June 2023, the volume of domestic transactions conducted using the digital yuan reached a staggering 1.8 trillion yuan (approximately $249 billion). There are more than 120 million individual e-CNY wallets across the country, with over 29 million digital yuan wallets opened in Suzhou alone (Cryptonews).
Hong Kong continues to advance its digital currency initiatives, aiming to integrate the digital yuan into the daily lives of residents and businesses, which is expected to strengthen economic ties with mainland China and promote the internationalization of the yuan.
