China connects digital yuan pilot to Hong Kong’s Fast Payment System
China has recently achieved a major milestone in its digital yuan pilot program by integrating its Central Bank Digital Currency (CBDC) platform with Hong Kong’s Fast Payment System (FPS). This move is expected to accelerate cross-border digital yuan transactions and enhance interoperability between China’s CBDC and international payment networks.
Connecting the Mainland with Hong Kong
The Fast Payment System (FPS), developed by the Hong Kong Monetary Authority, serves as an inter-bank connection tool and facilitates various financial transactions for customers. By linking the digital yuan with FPS, users can now make person-to-person transfers, top up e-wallets, and shop online in a more convenient and efficient manner.
This significant development was a collaborative effort between the Hong Kong Monetary Authority and the Digital Currency Research division of China’s People’s Bank of China (PBoC). According to the People’s Daily, this breakthrough allows Hong Kong residents to easily top up their digital yuan accounts from the Mainland, even while traveling.
The media outlet highlighted that individuals who hold ICBC (Asia), Bank of China (Hong Kong), Hang Seng Bank, and HSBC HK dollar and yuan accounts can avail of this solution. The deployment of this system coincided with the Asian Games, where members of Team Hong Kong were already utilizing the digital yuan for their transactions.
“The e-CNY-FPS solution has made transaction links shorter and reduced transaction costs,”
– People’s Daily
Athletes from Team Hong Kong expressed their satisfaction with the digital yuan wallets and found them “simple and convenient to use.” They praised the ability to directly top up their wallets using the FPS, making their experience in the athletes’ village “easy and convenient.”
Enabling Overseas Cardholders to Top Up Digital Yuan Accounts
This development follows the recent announcement by the PBoC that overseas cardholders can now use the bank’s app to top up their digital yuan accounts while traveling in China. This expansion further promotes the usage and acceptance of the digital yuan on a global scale.
