China’s push to digitize its economy has reached Hong Kong, with the introduction of the digital yuan (e-CNY) now available for use in local shops. This marks China’s first pilot of the digital currency outside the mainland, focusing on cross-boundary payments.
According to the Hong Kong Monetary Authority (HKMA), residents can now top up their digital wallets with up to 10,000 CNY (approximately $1,385) via 17 retail banks in Hong Kong, including Standard Chartered Bank, ZA Bank, and DBS Bank. The e-CNY wallet application is accessible on both Google Play and Apple’s App Store.
However, the current pilot restricts e-CNY use to cross-boundary payments only, prohibiting person-to-person transfers. HKMA head Eddie Yue stated that Hong Kong will collaborate closely with the People’s Bank of China to gradually expand e-CNY applications, enhance wallet functionalities, and promote acceptance among more retail merchants in both regions.
In contrast, U.S. policymakers are taking steps to limit interactions with China’s digital currency. Senator Rick Scott introduced the Chinese CBDC Prohibition Act in November 2023, aiming to ban U.S. financial service operators, including post offices, remittance firms, peer-to-peer crowdfunding platforms, and money services businesses, from facilitating any transactions involving the digital yuan.
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