The Hong Kong Financial Authority (HKMA) introduced Friday the launch of a digital yuan pilot program.
The digital yuan, or the e-CNY, permits retail transactions and cross-border funds throughout the metropolis.
It’s designed to supply a digital different to money funds for Hong Kong residents whereas integrating China’s central financial institution digital foreign money (CBDC) into its monetary system.
The pilot permits residents to create digital yuan wallets linked to their cellular numbers and fund them through 17 native banks utilizing the Quicker Fee System (FPS).
This collaboration between the FPS and the Digital Foreign money Institute of the Individuals’s Financial institution of China is the primary time any CBDC has linked with a speedy cost system.
The e-CNY wallets are anticipated to achieve extra functionalities as service provider adoption grows, facilitating pockets top-ups with out the necessity for a mainland checking account.
This system units transaction and steadiness limits to manage the digital yuan’s circulation and guarantee monetary stability.
Particular person transactions and each day spending are capped at 2,000 yuan and 5,000 yuan, respectively, with a most pockets steadiness of 10,000 yuan.
These controls are meant to handle utilization and preserve financial equilibrium.
The digital yuan has facilitated 1.8 trillion yuan (US$250 million) in transactions recorded as of June 2023.
Over 10 million retailers throughout 17 provinces and cities in mainland China now settle for the digital foreign money.
The HKMA’s future plans embrace enhancing e-CNY wallets with real-name verification and exploring company purposes for cross-border commerce settlements.
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