China’s central bank and the Hong Kong Monetary Authority (HKMA) are reportedly conducting Preliminary discussions, in a bid to initiate the piloting phase for the digital yuan in Hong Kong. 

Specifically, Preliminary talks are being organized between the two entities, regarding kickstarting testing stages for the e-CNY in the special administrative region of Hong Kong – highlighting a milestone in the process of making a CBDC officially available. 

“The HKMA and the Digital Currency Institute of People’s Bank of China are discussing the technical pilot testing of using e-CNY, the digital renminbi issued by the PBoC, for making cross-border payments, and are making the corresponding technical preparations.” chief executive Eddie Yue of the HKMA reportedly shared an update. 

Per Yue, Hong Kong and mainland Chinese tourists could gain additional advantages from the e-CNY, since it comes with the equivalent value as cash already in circulation. 

Furthermore, Yue reportedly stated that due to the yuan being widely utilized in Hong Kong, a digital version of it would be a convenient development. 

China reportedly continues to be the world pioneer in working towards CBDC developments. with its digital yuan pilots successfully finalized transactions with value equivalent to $300 million, as of November 2020. 

The first pilot projects were reportedly released throughout four major urban areas in April this year, followed by the expansion to nine metropolitan territories.