Hong Kong progresses cross border digital yuan work – Ledger Insights
On Friday, Eddie Yue, the CEO of the Hong Kong Financial Authority (HKMA), mentioned it’s discussing a technical pilot of the e-CNY or digital yuan with the Individuals’s Financial institution of China (PBOC).
Right here’s what Yue needed to say re the Chinese language central financial institution digital foreign money (CBDC) trials:
“The HKMA and the Digital Foreign money Institute of Individuals’s Financial institution of China are discussing the technical pilot testing of utilizing e-CNY, the digital renminbi issued by the PBOC, for making cross-border funds, and are making the corresponding technical preparations. Because the renminbi is already in use in Hong Kong and the standing of e-CNY is similar as money in circulation, it’s going to carry even higher comfort to Hong Kong and Mainland vacationers. Whereas there’s not but a timetable for the launch of e-CNY, it’s going to actually supply a further fee choice to these in Hong Kong and the Mainland who must make cross-border consumption.”
The 2 central banks are already collaborating on blockchain initiatives. A yr in the past, they signed an settlement to allow the PBOC’s commerce finance blockchain to interoperate with Hong Kong’s eTradeConnect. The PBOC answer was developed by its Digital Foreign money Analysis Institute and was previously known as the Bay Space Commerce Finance Blockchain. But it surely has since expanded to the Mainland and has greater than 48 participant banks. By the top of August, it had processed greater than RMB 191 billion ($29 billion) in commerce finance. And the PBOC is eager to increase its linkage to Europe.
We have now beforehand famous that the common worths of transactions in e-CNY trials have elevated, which may imply higher use for commerce. Nonetheless, the PBOC’s digital renminbi is meant to be solely a money various – referenced right here by Yue – and one doesn’t normally pay for important commerce transactions with money.
On Friday, the HKMA’s Yue additionally referenced the HKMA’s central financial institution digital foreign money work (CBDC) with the Financial institution of Thailand (BoT). After publishing a joint report with the BoT earlier this yr, each central banks at the moment are working with ConsenSys on additional experiments.