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The People’s Bank of China (PBOC) on Friday announced plans to integrate its fintech regulatory tools with Hong Kong and Macau, with the aim of strengthening cross-border fintech applications. The announcement was made by Vice Governor Zhang Qingsong at Hong Kong FinTech Week. The initiative involves collaboration with the Hong Kong Monetary Authority (HKMA) and the Macau Monetary Authority, incorporating the HKMA’s Fintech Supervision 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 the support of the Financial Services and the Treasury Office. The Shenzhen branch of the People’s Bank of China has been actively promoting e-CNY, having held 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, in which the bank explored the use of e-CNY to recharge Octopus cards.
Octopus Group CEO Tim Ying Tien-chi explained that its extensive payment network and Octopus app could simplify currency exchanges and retail transactions. He emphasized the shift from physical cards to the app to improve user convenience.
The People’s Bank of China 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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