Beijing wants Hong Kong to sow the seeds for the digital yuan. Will its plans bear fruit?
In September, Chief Executive John Lee Ka-chiu unveiled the city’s first five-year plan along with his policy address, highlighting Hong Kong’s strategic role in promoting the greater use of the yuan outside mainland China as a key priority. In the third part of a four-part series on the globalisation of the yuan, Xinmei Shen explores how Hong Kong is testing the interoperability of the e-CNY and…
Beijing is keen on Hong Kong to help promote the digital yuan, with the city being seen as a potential testing ground for the technology. The People's Bank of China has been piloting the use of the e-CNY in over 20 cities, with transactions reaching 16.7 trillion yuan (US$2.5 trillion) in November 2020. The cross-border e-CNY transfer services platform, launched earlier this year, provides overseas institutions with direct access to the digital yuan.
Analysts believe Hong Kong's capital market depth could turn Beijing's grand ambition into substantial demand, with the city's financial centre potentially becoming a laboratory for the interoperability of e-CNY and other digital assets.
Brief written by urgent.news from South China Morning Post's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
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