China Connects Digital Yuan to Hong Kong’s Fast Payment System

October 09, 2023

By Sharan Kaur Phillora

China has linked its digital yuan platform with Hong Kong’s Fast Payment System (FPS). This integration is expected to facilitate quicker cross-border digital yuan transactions and enhance the compatibility between China’s Central Bank Digital Currency (CBDC) and global payment systems.

Here’s what we know:

The FPS, developed by the Hong Kong Monetary Authority – the region’s central bank and principal financial regulator, offers a seamless method for bank-to-bank transfers. This system simplifies and accelerates payments by enabling person-to-person transfers, online shopping, and e-wallet top-ups.

The Hong Kong Monetary Authority spearheaded this innovative integration in collaboration with the Digital Currency Research division of the People’s Bank of China (PBoC). As a result, Hong Kong citizens can now easily refill their digital yuan balances from the Mainland while on the go.

Notably, this feature is accessible to users with accounts in ICBC (Asia), Bank of China (Hong Kong), Hang Seng Bank, and HSBC in both HK dollar and yuan denominations. The timing of this release is strategic, coinciding with the Asian Games. In fact, Hong Kong’s team athletes have already begun utilizing this facility at the games.

Media reports highlight the efficiency of the e-CNY-FPS integration, emphasizing its ability to streamline transaction processes and minimize associated costs. Athletes from Team Hong Kong shared their positive experiences with the digital RMB wallets, praising their simplicity and ease of use. They particularly appreciated the direct top-up feature through the FPS, which they found made expenditures within the athletes’ village more convenient.

This development follows closely on the heels of the PBoC’s recent announcement, which now allows international cardholders to refill their digital yuan accounts using the bank’s application during their stay in China.

About the author

Sharan Kaur Phillora’s thirst for knowledge has led her to study many different subjects, including NFTs and Blockchain technology – two emerging technologies that will change how we interact with each other in the future. When she isn’t exploring a new idea or concept, she enjoys reading literary masterpieces.

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