HONG KONG: Hong Kong is to test connecting China's digital yuan with its domestic payments network, officials said on Tuesday, the second stage of experiments of China's digital currency in the financial hub.
China's e-CNY is one of the most advanced central bank digital currency (CBDC) projects among major economies. Central bank executives say the project will be initially domestically focused, but cross-border trials are also under way in Hong Kong.
This latest trial will explore how Hong Kong residents can top up an e-CNY digital wallet using Hong Kong's domestic faster payment system, which Hong Kong people currently use to make domestic payments via mobile phones.
"This will help Hong Kong residents to use e-CNY when they cross the border," Nelson Chow, chief fintech officer of the Hong Kong Monetary Authority, told a media briefing on Tuesday.
(Reporting by Alun John; Editing by Nick Macfie)