Hong Kong retailers to accept digital yuan as e-CNY pilot expands

The e-CNY wallets are limited to cross-boundary payments and cannot be used for person-to-person transfers.

Hong Kong retailers will start accepting the digital yuan as the e-CNY pilot program expands, the Hong Kong Monetary Authority (HKMA) and the People's Bank of China (PBoC) announced.

HKMA Deputy Chief Executive Howard Lee said that the e-CNY would offer a secure and convenient method for residents of Hong Kong and the Mainland to conduct retail transactions across borders.

As part of the expanded pilot program, he noted that Hong Kong residents can now easily set up e-CNY personal wallets using only their Hong Kong mobile phone numbers. These wallets can be topped up via the Faster Payment System (FPS) through 17 retail banks in Hong Kong.

Lee also clarified that e-CNY wallets are limited to cross-boundary payments and cannot be used for person-to-person transfers.

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This expansion aligns with the broader "three connection, three facilitation" initiative set forth by the PBoC earlier this year.

HKMA Chief Executive Eddie Yue underscored the advantages of leveraging the FPS to facilitate seamless transactions, enhancing accessibility for Hong Kong residents and retailers alike.

Looking ahead, HKMA and PBoC are set to collaborate closely to further expand e-CNY applications, enrich the range of functionalities available to Hong Kong residents, and promote its acceptance amongst retail merchants in the region.