People’s Bank of China and Hong Kong to use digital yuan in cross-border payments

The Hong Kong Monetary Authority (HKMA) discusses testing the digital yuan with the People’s Bank of China. The asset is planned to be used in cross-border payments, CoinDesk writes.

At the moment, the partners are negotiating the technical part of the pilot program. The timing of testing is not disclosed.

HKMA Chief Executive Eddie Yue said the digital yuan would be equivalent to a Fiat currency. The regulator’s representative called the integration of the asset into cross-border payments an additional opportunity for citizens and businesses.

Earlier, the Chinese Central Bank introduced the digital yuan as a legal tender that legally compensates for Fiat.

In October, the regulator used the asset in pilot transactions of 1.1 billion yuan (~$162 million), and residents of the city of Shenzhen participated in the first distribution of coins.

Recall that on December 12, the digital yuan distribution will be held by the authorities of the Suzhou city district in Jiangsu province.

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