As a researcher with a background in financial technology and experience studying central bank digital currencies (CBDCs), I’m closely following the developments surrounding China’s e-CNY, particularly its expansion into Hong Kong.
As a crypto investor, I’m excited to share that I can now access China’s central bank digital currency in Hong Kong. Beijing’s determination to digitize its economy is evident as this innovative currency becomes available to us.
China has initiated its initial trial of the digital yuan outside its mainland, making it available for use in local stores in Hong Kong, as announced by the Hong Kong Monetary Authority (HKMA) in a recent press statement. The digital currency, referred to as e-CNY, is currently being tested for cross-border transactions.
At present, only Hong Kong residents have the ability to add a maximum of 10,000 CNY (around $1,385) to their digital wallets via 17 participating banks in Hong Kong, such as Standard Chartered Bank, ZA Bank, and DBS Bank.
As an analyst, I’ve examined the user guide for e-CNY, which has been released by the Hong Kong Monetary Authority (HKMA). The application is accessible for download on both Google Play and Apple’s App Store. However, it is essential to note that, during the pilot phase, the use of e-CNY wallets is restricted solely to cross-border transactions; person-to-person transfers are not allowed.
I, Eddie Yue, Head of the Hong Kong Monetary Authority (HKMA), confirm our commitment to deepening collaboration with the People’s Bank of China (PBOC) regarding the implementation and expansion of e-CNY in Hong Kong. Our objectives include enhancing the versatility of e-CNY wallets for Hong Kong residents, expanding the scope of acceptable merchants, and ultimately increasing the usage and awareness of e-CNY in both regions.
Currently in the U.S., legislators are working to prevent American financial institutions from engaging with China’s digital currency. In November 2023, Senator Rick Scott presented the Chinese CBDC Prohibition Act, which aims to restrict U.S. post offices, remittance companies, peer-to-peer crowdfunding platforms, and all other money service businesses from processing any transactions related to China’s digital yuan.
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2024-05-17 14:31