China\u2019s central bank and the Hong Kong Monetary Authority, or HKMA, are in the preliminary stages of piloting the digital yuan for cross-border payments \u2014 underscoring another key development in the rollout of a central bank digital currency, or CBDC.<\/p>\n\n\n\n
In a media release that appeared on the HKMA website on Friday, chief executive Eddie Yue provided an update on the ongoing work surrounding cross-border payments. He indicated that HKMA is in dialogue with the People\u2019s Bank of China, or PBoC, to begin pilot testing the e-CNY.<\/p>\n\n\n\n
Yue said<\/a>:<\/p>\n\n\n\n \u201cThe HKMA and the Digital Currency Institute of People\u2019s Bank of China are discussing the technical pilot testing of using e-CNY, the digital renminbi issued by the PBoC, for making cross-border payments, and are making the corresponding technical preparations.\u201d<\/p><\/blockquote>\n\n\n\n Hong Kong and mainland Chinese tourists could greatly benefit from e-CNY, Yue said, because it represents the same value as cash already in circulation. And because the yuan is already used in Hong Kong, a digital equivalent would be a matter of convenience.<\/p>\n\n\n\n China continues to be at the forefront of CBDC development, with its digital yuan pilots processing $300 million worth of transactions<\/a> as of early November. The first pilot projects were rolled out across four major cities in April before expanding to nine metropolitan areas<\/a>.<\/p>\n\n\n\n