China has completed its first digital pilot projects in yuan with Hong Kong.
Wang Xin, director of the Research Agency of the People’s Bank of China, said that the Hong Kong Monetary Authority and the People’s Bank of China have conducted technical tests on cross-border use of the Chinese central bank’s digital currency.
The official made the announcement at a press conference on Thursday organized by the Chinese government’s Information Agency, local news agency Sina Finance reported.
The news comes shortly after Mu Changchun, president of PBoC’s cryptocurrency research institute, proposed a set of CBDC global rules last week. At a BIS seminar, Mo called on global financial institutions to ensure global interoperability between national digital currencies.
“It is necessary to provide interoperability between CBDC systems in various jurisdictions and exchanges. The National Bank of Kuwait has reviewed the proposals with central banks and other monetary authorities.”
The latest news contributes greatly to the strong development of the Chinese central bank’s digital currencies. Since the launch of the domestic experimental digital yuan programs in April 2020, the Bank of China has actively sought to transfer its expertise in the field of digital currency to the central bank outside its jurisdiction.
Thus, NBK joined the central bank authorities in Hong Kong, Thailand and the UAE to study a cross-border CDC in February 2021. At the end of 2020, an official at the Capital Markets Authority said that the regulator and NBK are in a preliminary stage. The stages of the digital yuan trial for cross-border payments.