Hong Kong 'Exploring' Collaboration With China on Digital Yuan: Finance Chief

A cross-boundary digital yuan could bring Hong Kong closer to China, Hui said.

AccessTimeIconOct 21, 2020 at 7:49 p.m. UTC
Updated Sep 14, 2021 at 10:22 a.m. UTC
10 Years of Decentralizing the Future
May 29-31, 2024 - Austin, TexasThe biggest and most established global event for everything crypto, blockchain and Web3.Register Now

Hong Kong Treasury Secretary Christopher Hui said Wednesday the region's government is considering collaborating with mainland authorities on China's digital currency project, the digital yuan.

  • Hui said during a Legislative Council Q&A Hong Kong is most interested in wholesale and cross-border digital currency use cases, a contrast to China's primarily retail-facing digital yuan, also known as DC/EP.
  • "If the [digital yuan] can be applied to cross-boundary payments, it would further promote the mutual connectivity" between China and Hong Kong, he said.
  • Officials at the Hong Kong Monetary Authority plan to continue discussing the digital yuan with their counterparts at the People's Bank of China (PBoC), he said.
  • "In addition, the Financial Services Development Council has formed a working group to study how Hong Kong can seize the opportunities from DC/EP's development," Hui said.
  • Hui appeared to throw cold water on reports Wednesday that PBoC is already planning to trial-run the digital yuan in Hong Kong. But HKMA "will actively respond and collaborate" with PBoC if the interest is there, he added.

Disclosure

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

CoinDesk is an award-winning media outlet that covers the cryptocurrency industry. Its journalists abide by a strict set of editorial policies. In November 2023, CoinDesk was acquired by the Bullish group, owner of Bullish, a regulated, digital assets exchange. The Bullish group is majority-owned by Block.one; both companies have interests in a variety of blockchain and digital asset businesses and significant holdings of digital assets, including bitcoin. CoinDesk operates as an independent subsidiary with an editorial committee to protect journalistic independence. CoinDesk employees, including journalists, may receive options in the Bullish group as part of their compensation.


Learn more about Consensus 2024, CoinDesk's longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.