The Hong Kong Monetary Authority said it is discussing the technical pilot testing of the digital yuan, or e-CNY, for cross-border payments with the Digital Currency Institute of the People s Bank of China, the central bank.
Eddie Yue Wai-man, chief executive of the HKMA, said the monetary authority and the PBOC have been making corresponding technical preparations, but there is not yet a timetable for the launch.
As the largest offshore yuan center, Hong Kong has a pool of more than 670 billion yuan ($99.8 billion) although most of it is illiquid.
Renminbi is already in use in Hong Kong, and the status of e-CNY is the same as cash in circulation, said Yue. The digital currency will be an additional payment option for those who need to make cross-border purchases.