Hong Kong Sets Stage For E-CNY Use, To Launch Pilot ‘Soon After Spring Festival’

Feb 07, 2022

https://liquidity-provider.com/app/uploads/2022/02/dizajn-bez-nazvaniya-2022-02-08t174658.681.png

Hong Kong will officially launch a trial system for the usage of the virtual yuan, or e-CNY, in the city for food and fun, giving the unique administrative area the status of the first offshore metropolis to do so outside of mainland China.

In a regular monthly financial affairs plenary session of the Legislative Council, Eddie Yue Wai-man, chief executive officer of the Hong Kong Monetary Authority (HKMA), the city's de facto central bank, said: "The experimental phase of e-CNY will be an important step for Hong Kong to enhance its position as a global offshore yuan commercial hub."

He did not provide a specific debut schedule, instead saying that it would start shortly after the Spring Festival. This season finishes on the 15th day of the Lunar New Year, which occurs on February 15, according to Chinese traditions.

Since March of 2021, the HKMA has been evaluating the usage of the virtual yuan, with certain bank employees utilizing Hong Kong's Faster Payment System (FPS) payment \infrastructure to deposit Hong Kong dollars into e-CNY wallets. The HKMA and the People's Bank of China (PBOC) will pick specific mainland guests and other persons to use e-CNY at select bars and restaurants in Hong Kong as part of the experimental phase. At the same time, Hong Kong citizens living in mainland Chinese Greater Bay Area urban centers will also be able to use virtual money instead of two different e-wallets earlier.

To utilize the electronic yuan, users must first install e-CNY wallets, which will connect to Hong Kong's FPS to top up and conduct transactions. At the end of 2021, the FPS had 9.6 million authorized users, and the average rate of new operations increased by 90% year on year to 670,000 last year. Legislators applauded the experiment, which Yue claimed will first concentrate on retail purchases before expanding to include wholesale operations later.

The virtual yuan is now accepted in Shenzhen, Suzhou, Xiongan, Chengdu, Shanghai, Hainan, Changsha, Xian, Qingdao, and Dalian and Beijing and Winter Olympics locations outside the capital.

According to Zou Lan, the PBOC's head of financial markets, e-CNY users quadrupled to 261 million in December from 140 million only two months earlier. The spike occurred before the PBOC's public release of its official e-CNY wallet app in January.

Allan Zeman, the founder of Lan Kwai Fong Holdings and its eponymous nightlife zone in Hong Kong's Central, has shown interest in having his stores and cafes participate in the e-CNY test plan.

"Cafes and other businesses in Lan Kwai Fong will want to participate in the trials since e-CNY represents the future of transactions. In mainland China, nobody carries cash. To reach a wider audience, Hong Kong would have to speed up and create virtual transaction methods," Zeman said.

The experiment will take place during a period when few mainland visitors are traveling to Hong Kong due to rigorous isolation measures imposed in the aftermath of the COVID outbreak. Inbound visitor visits fell by 98% to 81,950 in the first 11 months of the year, from 3.56 million in the same time in 2020.

On the other hand, Zeman believes that starting the trials at a low time would ensure that the technology is prepared for the rush of visitors once the border with mainland China opens again.

The project has also garnered positive feedback from Hongkongers residing in mainland Chinese Greater Bay Area cities.

"I applaud the e-CNY testing since it is a realistic way to speed the incorporation of individuals residing in the Greater Bay Area," remarked Wilson Chow, partner and global TMT leader at accounting firm PwC. Chow has been a resident of Shenzhen since 2003.

"Many individuals, myself included, presently utilize two e-wallets, one in yuan and the other in Hong Kong dollars, to pay for commercial purchases made in both mainland China and Hong Kong. The implementation of a single e-CNY wallet across the Greater Bay Area would make digital money simpler," he said.

According to Chow, the e-CNY is run on a secured blockchain network overseen by the central bank, so there is no reason for users to be concerned about safety.

The Hong Kong Monetary Authority is also investigating the introduction of a virtual Hong Kong dollar known as e-HKD, and further information will be published by the middle of 2022.

Yue noted that the administration also talked with banks about assisting small and medium businesses affected severely by the COVID-19's current wave.

Subscribe Our Newsletter

New Bitcoin Futures ETF Could Trigger Rally to $168,000, Analyst Asserts
New Bitcoin Futures ETF Could Trigger Rally to $168,000, Analyst Asserts

According to experts at Fundstrat, a new ETF may give Bitcoin a significant boost. Bitcoin's equilibrium price could spike to as high as $168,000 if the ProShares exchange-traded fund (ETF) that will begin trading on the New York Stock Exchange.

Crypto
Expert Opinion: Apple May Have 40 Million Subscribers for Streaming TV Service, Analyst Says
Expert Opinion: Apple May Have 40 Million Subscribers for Streaming TV Service, Analyst Says

Sacconaghi claimed that Apple (AAPL) had between 20 million and 40 million paying users, with yearly revenue ranging between $1 billion and $2 billion. That's not much for a firm with about $400 billion in annual revenue, but he believes the service is vital for strategic reasons.

Companies
Oliver

How to Choose the Best Crypto Payment Provider?
The cryptocurrency market is booming at an unprecedented rate. Currently, there are over 20,000 different kinds of cryptocurrencies being traded in the global crypto market. This significant growth has caught the attention of many businesses and entrepreneurs who are now looking for ways to implement cryptocurrency into their own activities and accept crypto payments.

discover

Liquidity Provider

How to Identify Liquidity?

Let's find out how to identify Forex Liquidity, how to identify the liquidity of cryptocurrencies, and how to pick the best LP.

Liquidity

Contact Us

Contact the Liquidity Provider
for any questions and advertising inquiries b2broker

    Please fill out this contact form to get in touch with us

    / 3000

    By clicking “Get in touch” button, you agree to the privacy policy

    Successful!
    Thank you for your request.
    We will contact you shortly.
    Close

    Alexander

    Best Bitcoin Wallets in 2023: Comparing Features, Security, and Usability

    Best Bitcoin Wallets in 2023

    Alexander

    Top Rising NFT Artists to Watch Out for in 2023 And Beyond

    Top Rising NFT Artists to Watch Out for in 2023

    Alexander

    Insuring Your Future: What Type of Insurance to Buy?

    Insuring Your Future: What Type of Insurance to Buy

    Alexander

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Is IUL a Good Investment Strategy? — A Guide for Beginner Investors

    Alexander

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection of Your Digital Assets.

    Are Crypto Wallets Safe? — Tips to Ensure Maximum Protection

    Alexander

    Roth IRA Guide: What It Is and What You Need to Know.

    Roth IRA Guide: What It Is and What You Need to Know

    Alexander

    From Gold to Index Funds and Crypto: Where to Invest in 2023 for Long Term?

    From Gold to Index Funds and Crypto: Where to Invest in 2023

    Alexander

    Understanding Algorithmic Trading: A Guide for Beginners

    Understanding Algorithmic Trading: A Guide

    Alexander

    Stop Vs. Stop-Limit Order: How Do They Differ?

    Stop Vs. Stop-Limit Order: How Do They Differ

    Alexander

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Invest in the Intelligent Future: The Best AI Stock Market Leaders of 2023

    Deborah Middleton

    How MEC Rules Can Impact Your Life Insurance Policy

    How MEC Rules Can Impact Your Life Insurance Policy.

    Deborah Middleton

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Navigating the Ethical Landscape of AI: Challenges and Solutions

    Deborah Middleton

    Managing Your Financials The Right Way – A Startup Guide 

    Managing Your Financials The Right Way - A Startup Guide

    Anna

    A Beginner Guide To The Crypto Analysis Tools.

    A Beginner Guide To The Crypto Analysis Tools.

    Anna

    A Brief Introduction to Scalping

    A Brief Introduction to Scalping.

    Anna

    How to Invest in Stocks: A Beginner’s Guide

    How to Invest in Stocks: A Beginner’s Guide

    Anna

    Tips On Finding Crypto Liquidity Providers In 2023

    Tips On Finding Crypto Liquidity Providers In 2023.

    Anna

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Forex Liquidity in 6 Questions and Tips on How to Become Successful in Trading

    Anna

    A Brief and Comprehensive Guide to Spot Trading.

    A Brief and Comprehensive Guide to Spot Trading.

    Anna

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    What is The Difference Between Liquidity Provider and Liquidity Aggregator?

    Tamta

    What Is SWIFT Banking System?

    What Is SWIFT Banking System?

    Tamta

    How Liquidity Providers Drive The Foreign Exchange Market

    How Liquidity Providers Drive The Foreign Exchange Market

    Tamta

    How to Start Investing In Crypto

    How to Start Investing In Crypto

    Tamta

    5 Best Crypto CFD Liquidity Providers 2023

    5 Best Crypto CFD Liquidity Providers 2023.
    Latest News - Liquidity Provider: Business & FinTech Media
    • News
      • Stocks
      • Banks and Finance
      • Companies
      • Crypto
      • Forex
      • AI
      • Technology
      • DeFi
      • NFT
    • Articles
      • Crypto Payments
      • Trading
      • Crypto Exchange Business
      • Forex Business
      • Fintech
      • Liquidity
      • FinTech Awards
      • Blockchain
      • Investing
      • NFT
      • DeFi
    • More
      • Videos
      • Liquidity Providers List
      • Crypto Payment Providers
    [email protected]

    © 2023 Liquidity Provider. All Rights Reserved

    Privacy Policy Cookie Policy
    This site is registered on wpml.org as a development site.