Hong Kong Widens Testing of China’s Digital Yuan to Additional Banks

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By BitcoinWiki News

Key Takeaways:

– Hong Kong has entered the second phase of technical testing for China’s digital yuan.
– The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China have completed initial technical tests for cross-border payments using the digital yuan in Hong Kong.
– The second phase of the technical trial is currently underway, involving more Hong Kong banks and testing the digital yuan wallet’s top-up function through the Faster Payment System (FPS).
– The FPS facilitates cross-bank payments in Hong Kong dollars or Chinese yuan by using the recipient’s mobile phone number or email address.
– The digital yuan, also known as the e-CNY, is expected to provide a secure and convenient option for cross-border retail consumption.
– The expansion of digital yuan testing in Hong Kong comes as China leads in CBDC development.
– Hong Kong is aiming to become a major crypto hub and has unveiled new regulations for cryptocurrencies.
– Retail investors in Hong Kong are now allowed to trade specific “large-cap tokens” on licensed exchanges, with safeguards in place.
– The Securities and Futures Commission (SFC) has been awarding licenses to exchanges, including SEBA Bank, to conduct regulated activities in virtual asset-related products.
– Cryptocurrency exchange OKX is in the final stage of obtaining a Virtual Asset Service Provider License (VASP) in Hong Kong.


Hong Kong has begun the second phase of testing for China’s digital yuan, expanding the trial to involve more local banks. The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China have completed initial technical tests for cross-border payments using the digital yuan in Hong Kong. The second phase of the trial is currently underway, testing the digital yuan wallet’s top-up function through the Faster Payment System (FPS). The FPS, introduced by the HKMA in 2018, facilitates cross-bank payments in Hong Kong dollars or Chinese yuan. The digital yuan, also known as the e-CNY, is expected to provide a secure and convenient option for cross-border retail consumption and enhance payment services in the Greater Bay Area of Guangdong, Hong Kong, and Macau. Hong Kong is actively promoting the development of Web3 and aims to become a major crypto hub. To facilitate this, the region has unveiled a new rulebook for cryptocurrencies and the Securities and Futures Commission (SFC) has been awarding licenses to exchanges. The SFC recently granted an approval-in-principle (AIP) license to SEBA Bank, allowing them to conduct regulated activities related to virtual assets. Crypto exchange OKX is also in the final stage of obtaining a Virtual Asset Service Provider License (VASP) in Hong Kong.

Overall, Hong Kong is embracing the development of digital currency and cryptocurrency, with the testing of China’s digital yuan and the promotion of crypto-related activities. This positions Hong Kong as a potentially significant player in the digital financial landscape.

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