Testing of the digital renminbi has kicked off in Hong Kong with a select cohort of local financial institutions and businesses.
Mu Changchun (穆长春), head of the People’s Bank of China Digital Currency Research Institute, said that it is currently undertaking cooperation with Hong Kong financial regulators to jointly explore improvements to use of the digital renminbi for cross-border payments purposes.
“Both parties have successfully undertaken the initial phase of technical trials for basic functions such as topping up, account transfers and payments using digital renminbi wallets at local Hong Kong banks and selected Hong Kong businesses,” said Mu on 9 December at a forum on Hong Kong’s role as an international financial centre.
“At present both parties are currently in the second phase of research, exploring methods for connecting and linking the digital renminbi with the Faster Payment System, and further raising payments efficiency on a foundation of respecting the usage habits of local Hong Kong residents.”
China first launched trials for the cross-border usage of the digital renminbi in mainland China by Hong Kong residents in the first half of 2021. By November authorities had approved the use of the digital renminbi for tax payments purposes in mainland China by Hong Kong residents.