HongKong,MainlandRegulatorsWeighDigitalYuanWalletUpgrades

Chinese mainland and Hong Kong regulators are discussing upgrades to digital yuan wallets that would raise transaction limits and broaden usage, following a sharp increase in local adoption of the central bank digital currency.

The cross-border expansion of the digital yuan — formally known as e-CNY —underscores Beijing’s push to internationalize the yuan and improve the efficiency of cross-border digital payments.

About 80,000 digital yuan wallets have been opened using Hong Kong mobile numbers, the city’s Secretary for Financial Services and the Treasury, Christopher Hui, said Wednesday. The number of local merchants accepting the currency has jumped more than 16-fold over the past year to 5,200, spanning retail chains, hotels and supermarkets, Hui said. The number of local banks that enable wallet top-ups via Hong Kong’s Faster Payment System (FPS) has increased to 18 from 17, while participating mainland operators rose to five from four.

The expansion follows a 2024 integration linking the mainland’s cross-border digital yuan platform — since updated and renamed Cross-border e-CNY Transfer Services (CBETS) — with Hong Kong’s FPS. The connection was billed as the world’s first bilateral linkage between a retail central bank digital currency system and a fast-payment network.

People familiar with the discussions said users and participating institutions are pressing for more comprehensive wallet services in Hong Kong. Priorities include easier upgrades to real-name wallets, a more robust acceptance environment and support for additional use cases such as person-to-person transfers, bill payments, tax refunds and salary disbursements.

The People’s Bank of China and the Hong Kong Monetary Authority are discussing the scope and feasibility of such wallet upgrades, Hui said. The aim is to lift usage limits, broaden application scenarios and improve the user experience, particularly for Greater Bay Area residents.

Major financial institutions including Bank of China (Hong Kong), Industrial and Commercial Bank of China (Asia) and Hang Seng Bank provide full digital yuan services. Mobile payment platforms AlipayHK and WeChat Pay HK are developing acceptance functions. Retailers including 7-Eleven, Circle K and Chow Tai Fook Jewellery accept the currency for everyday purchases.

Contact editor Han Wei (weihan@caixin.com)