{"id":52228,"date":"2023-08-23T21:45:10","date_gmt":"2023-08-24T01:45:10","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/crypto\/e-cny-driving-china-hong-kong-cross-border-pay\/"},"modified":"2023-08-23T21:45:13","modified_gmt":"2023-08-24T01:45:13","slug":"e-cny-driving-china-hong-kong-cross-border-pay","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=52228","title":{"rendered":"e-CNY \u2018Driving China-Hong Kong Cross-border Pay\u2019"},"content":{"rendered":"
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The Chinese digital yuan pilot\u2019s spread to Hong Kong may be playing a part in driving up cross-border payments, media outlets have suggested.<\/p>\n

Per China Fund News, via the Securities Times, certain types of \u201ccross-border payments\u201d between Mainland China and Hong Kong, as well as the mainland and Macau, have \u201cincreased tenfold\u201d in the past 12 months.<\/p>\n

The CBDC was not cited as the only factor that had driven the rise, with a number of conventional cross-border banking innovations also credited.<\/p>\n

But the e-CNY was alleged to be acting as one of the key driving forces in the increase in cross-border commerce.<\/p>\n

The digital yuan is only legal tender in Mainland China, as Hong Kong has its own economic system and a separate currency.<\/p>\n

This is also the case in Macau.<\/p>\n

But in the past year, the central People\u2019s Bank of China (PBoC) has been keen to find ways for Hong Kongers and mainlanders to use the e-CNY when they travel \u201ccross-border.\u201d<\/p>\n

One such innovation targets Hong Kong residents who visit nearby mainland cities like Shenzhen.<\/p>\n

In March this year, Hong Kong residents were told they could use the Octopus app (Hong Kong\u2019s most widely used e-pay app) to purchase e-CNY hard wallet cards at self-service card issuing machines at Shenzhen\u2019s Lo Wu border crossing.<\/p>\n

The app-card link can be used at locations throughout the Guangdong-Hong Kong-Macau Greater Bay Area.<\/p>\n

And the PBoC has attempted to spur adoption by offering Hong Kong users discount of up to 20% at hundreds of designated retailers.<\/p>\n

Shenzhen has also begun accepting e-CNY hard wallet payments from Octopus App-using Hong Kongers on two of its busiest bus lines.<\/p>\n

The city said it would \u201cgradually\u201d expand coverage to encompass \u201call of the city\u2019s bus routes in the future.\u201d<\/p>\n

The Shenzhen branch of the PBoC said that 17 hard wallet card-issuing machines have been deployed in its Luohu Port area and other parts of the city since March.<\/p>\n

And it claimed that a total of \u201cover 18,000\u201d CBDC hard wallet cards have been issued to Hong Kong residents.<\/p>\n

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Digital Yuan: Playing a Part in Mainland China-Hong Kong Commerce?<\/h2>\n

Beijing has also sought to drive up payments in the opposite direction, targeting Mainland Chinese travelers to Hong Kong.<\/p>\n

Last month, Chinese banks claimed that over 200 Hong Kong outlets now accept e-CNY payments.<\/p>\n

Banking platforms allow merchants in Hong Kong to accept CBDC pay from Mainland Chinese customers, with the central bank coin instantly converted to Hong Kong dollars.<\/p>\n

Stores popular among mainlanders have adopted the coin, including Duty Zero by CDF, the Kwun Tong district\u2019s IW Hotel, and the children\u2019s clothing chain Balabala.<\/p>\n<\/p><\/div>\n