The People's Bank of China (PBOC) announced plans on Friday to integrate its fintech regulatory tools with Hong Kong and Macao, aiming to fortify cross-border fintech applications. The announcement was made by Deputy Governor Zhang Qingsong at the HK FinTech Week. The initiative involves collaboration with the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao, incorporating HKMA's Fintech Supervisory Sandbox.
As part of this initiative, Octopus Cards Ltd and the Bank of China (Hong Kong) (BOCHK) will facilitate the use of e-CNY in Hong Kong, with support from the Financial Services and the Treasury Bureau. The Shenzhen branch of PBOC has been actively promoting e-CNY, having conducted 73 events and spent 570 million yuan ($77.9 million). In addition, BOCHK has launched e-CNY services.
The Bank of China (Hong Kong) is leading efforts to increase the use of e-CNY in Hong Kong through large-scale cross-border applications, focusing on transactions involving mainland visitors. This builds on its 2020 cross-border pilot projects, where the bank explored using e-CNY to top up Octopus cards.
Octopus Group CEO Tim Ying Tien-chi explained that their extensive payment network and Octopus app could simplify currency exchanges and retail transactions. He emphasized the shift from physical cards to the app for enhanced user convenience.
The PBOC's initiative aims to boost financial innovation in the Guangdong-Hong Kong-Macao Greater Bay Area and promote inclusive finance through the digital yuan.
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