Chinese Central Bank Calls for Exploring Digital Renminbi’s Cross-border Payments Potential in Greater Bay Area

A senior official from the People’s Bank of China (PBOC) who is also a delegate to the National People’s Congress (NPC) has called for further exploring the cross-border payments applications of the Digital Renminbi within the Greater Bay Area as part of broader efforts to transform the region into one of China’s international financial hubs.

Bai He’xiang (白鹤祥), NPC delegate and head of the Guangzhou branch of PBOC, has called for transforming the Greater Bay Area of Hong Kong, Macau and Guangdong into a central hub for five key areas of finance, including fintech, innovation capital, green finance, renminbi asset allocations and financial system innovations.

In order to achieve these goals Bai has called for a slew of measures including:

1. Raising Greater Bay’s position as an international financial hub so that it is eventually on par with Shanghai as an international finance centre. Make “Establishing the Greater Bay Area as an International Financial Hub” one of the key work missions for China’s 14th Five Year Plan.
2. Establishing work mechanisms for central government guidance, including local financial leadership teams in the Greater Bay Area comprised of members of PBOC, the China Banking and Securities Regulatory Commission, the China Securities Regulatory Commission, the State Administration of Foreign Exchange, the Hong Kong Monetary Authority and the Macau Monetary Authority, in order to engage in coordinated resolution of key issues.
3. Accelerate the formulation of work plans, and draft a “Greater Bay Area International Finance Hub Development Implementation Plan or Action Plan,” confirming functions, growth targets and development missions.
4. Drive financial resources towards Greater Bay as an international financial hub. Encourage and support financial markets and financial institutions to establish work plans with Greater Bay and support state financial regulators, major financial institutions and the Guangdong province government in the establishment of strategic cooperative relationships.
5. Explore cross-border payments applications of the Digital Renminbi, and reform and innovate various “connect” measures that link the financial markets of Hong Kong, Guangdong and Macau.