Bank of China Hong Kong Completes Digital RMB Sandbox Trial
Luisa Crawford Jul 03, 2023 12:42
Bank of China Hong Kong announces that the second phase of its digital Renminbi (e-CNY) priority experience events, staged in collaboration with Bank of China's mainland branches, was a success.
Bank of China Hong Kong (2388) announces that the second phase of its digital Renminbi (e-CNY) priority experience events, staged in collaboration with Bank of China's mainland branches, was a success. This follows the Hong Kong Monetary Authority's clearance at the end of last year for the bank to begin the digital RMB sandbox trial. Digital Renminbi is the Chinese version of CBDC.
Qualified clients who took part in the experiment were able to see real-world applications of the digital RMB. Customers may top up their digital RMB wallets using the Bank of China Hong Kong mobile banking app and spend the digital money at a variety of businesses in both mainland China and Hong Kong.
Customers predominantly used the digital RMB for offline transactions on the mainland during the event, notably for tiny, high-frequency purchases covering everyday food and drink, transportation, and retail purchasing. The bank also supplied local retailers accepting digital RMB with acquiring and Hong Kong dollar clearing services, certifying the usage of digital RMB for consumption in Hong Kong.
Bank of China Hong Kong says it will once again partner with Bank of China's mainland branches to launch the first-ever "Cross-border Shopping Festival" in Hong Kong, which will include the digital RMB. Selected clients will get digital RMB red packets for consumption, giving them personal experience with the convenience of digital RMB cross-border payments.
Deputy General Manager of Bank of China Hong Kong's Digital Currency Special Task Group, submitted a digital RMB sandbox test report to the Hong Kong Monetary Authority. The group plans to refine the product package based on feedback from merchants and customers. The focus is on streamlining the customer journey from application to wallet activation, improving the customer experience, and promoting merchant acceptance of digital RMB. This will enable mainland tourists to use digital RMB for payments in Hong Kong, save merchants on funds clearing costs, and strengthen Bank of China Hong Kong's cross-border financial services.
Image source: Shutterstock
