Hong Kong Monetary Authority: Expand cross-border pilot of digital RMB in Hong Kong

Source: Hong Kong Monetary Authority

The Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBOC) have made further progress in their cooperation on the digital RMB cross-border payment pilot, expanding the scope of the digital RMB pilot in Hong Kong, facilitating Hong Kong residents to open and use digital RMB wallets (digital currency wallets), and add value to digital currency wallets through FPS. At the same time, the interoperability between FPS and the digital RMB central bank end system operated by the Digital Currency Research Institute (DCI) of the PBOC is also the world's first connection between a fast payment system and a central bank digital currency system, providing an innovative use case for the interoperability emphasized by the G20 cross-border payment blueprint.

The expansion of the cross-border pilot of the digital RMB in Hong Kong is one of the six measures of "three connections and three conveniences" announced by the PBOC at the beginning of this year. With the expansion of the pilot scope, users can now open and use personal digital currency wallets in Hong Kong with just a Hong Kong mobile phone number. Digital currency wallets can be used for cross-border payments, but cannot be used for transfers between individuals. Hong Kong users can add value to their wallets through the "FPS" service at 17 local retail banks (Annex 1). In addition to being used in the Greater Bay Area, the digital RMB can also be used in other pilot areas in the Mainland. Barcode interoperability between the digital RMB and traditional electronic payments in the Mainland is being developed, and Hong Kong residents will also have more consumption options in the future. HKMA Chief Executive Eddie Yue said: "We are delighted that Hong Kong has become the first cross-border pilot for the digital RMB and the first region outside the Mainland where local residents can open digital currency wallets. The digital RMB has expanded its pilot scope in Hong Kong and fully utilized the advantages of FPS's 24x7 and instant transfers, allowing users to top up their digital currency wallets anytime and anywhere without opening a Mainland bank account, making it easier for Hong Kong residents to spend in the Mainland. We will continue to work closely with the People's Bank of China to gradually expand the scope of application of the digital RMB, enrich the functions of the digital currency wallets available to Hong Kong residents, and promote more retail merchants to accept the digital RMB to facilitate cross-border retail payments for residents of both places." The HKMA will also work with the Digital Research Institute to explore ways to enable Hong Kong residents to upgrade their digital currency wallets through real-name authentication, and to promote more interconnections in payments, to provide users (including individuals and merchants) with a more convenient payment experience. At the same time, they will also jointly explore application scenarios for enterprises to facilitate cross-border trade settlement.

The use of digital RMB will provide Hong Kong and mainland residents with an additional safe, convenient and brand-new cross-border payment option, improve the efficiency of cross-border payment services and user experience, and help promote connectivity in the Guangdong-Hong Kong-Macao Greater Bay Area.