China’s central bank digital currency (CBDC) is now available in Hong Kong, as Beijing moves to digitize its economy. The digital yuan, also known as e-CNY, is undergoing a pilot for cross-boundary payments.

Currently, Hong Kong residents can top up their digital wallets with up to 10,000 CNY (approximately $1,385) through 17 retail banks, including Standard Chartered Bank, ZA Bank, and DBS Bank. The application for the e-CNY wallet is available for download on both Google Play and Apple’s App Store.

e-CNY Usage in Hong Kong

The use of e-CNY is limited to cross-boundary payments during this pilot phase. Person-to-person transfers are excluded. The Hong Kong Monetary Authority (HKMA) is closely working with the People’s Bank of China to gradually expand the applications of e-CNY and enrich the functionalities available to Hong Kong residents. Efforts are also being made to promote the acceptance of e-CNY by more retail merchants in both locations.

HKMA head Eddie Yue emphasized the collaboration between Hong Kong and China to enhance the digital yuan’s functionalities and merchant acceptance.

U.S. Policy on China’s Digital Currency

In the United States, policymakers are taking steps to restrict U.S. financial service operators from interacting with China’s digital currency. In early November 2023, Senator Rick Scott introduced the Chinese CBDC Prohibition Act. This legislation aims to ban U.S. post offices, remittance firms, peer-to-peer crowdfunding platforms, and all money services businesses from facilitating any transactions involving China’s digital yuan.

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