Hong Kong Plans To Conduct Phase II Digital RMB Cross Border Payment Test

On March 15, it was reported that the media disclosed that it had studied the use of digital RMB with the digital currency Research Institute of the people's Bank of China and conducted cross-border payment technology test in Hong Kong. BOCHK was designated by the Central Bank of China as the representative of the Hong Kong Bank of digital RMB to participate in the technical test. Merchants and about 200 bank employees were invited to participate in the test.

According to the chief executive of the HKMA, Mr Yu Wai Man, the test includes that when the amount of money in the digital RMB wallet is insufficient, the Bank of Hong Kong can transfer the money to the wallet quickly through the Bank of Hong Kong. At present, the test is progressing smoothly. Now we are discussing with the people's Bank of China whether to expand the test points to cover more banks, customers and merchants, so as to facilitate the cross-border use of digital RMB by residents of both places.

Yu further disclosed that Hong Kong would not officially launch the use of RMB until the mainland completed the pilot work and carried out nationwide. At present, it is still some time before the mainland officially and widely used digital RMB.

In 2017, Hong Kong began to conduct research on the central bank's digital currency. Led by the Hong Kong Monetary Authority, Hong Kong dollar issuing banks launched the lion rock project, which has entered the second stage. At present, the Hong Kong Exchanges and Clearing Limited, 19 banks and five other enterprises will participate in the project and operate on a trial basis with actual trade transactions. The results are expected to be published in the first quarter of this year.

In the second half of last year, Yu Weiwen, President of the Hong Kong Monetary Authority, released the new trend of financial technology - cross border payment. He pointed out that the Hong Kong Monetary Authority and the Institute of digital currency of the Central Bank of China are studying the technical test of cross-border payment using digital RMB and make corresponding technical preparations.