China is working to extend its central bank-backed digital currency network to offshore institutions, including branches located in Hong Kong. Lu Yuan, deputy head of the People’s Bank of China’s digital currency research institute, stated at Hong Kong’s Fintech Week that while there are currently 30 domestic banks serving as e-CNY operators, the goal is to extend this capability to offshore banks. Lu Yuan expressed hope that in the very near future, branches of current operators in Hong Kong could open e-CNY accounts for both individual and enterprise clients.
Overseas banks currently access the digital yuan system via the Cross-border e-CNY Transfer Services (CBETS) platform. This new-generation infrastructure was launched in its commercial version in June, which allows overseas banks to conduct round-the-clock digital payments without needing to overhaul their existing IT systems.
Industrial and Commercial Bank of China (ICBC), which is China’s largest bank by assets and a core e-CNY operator, has already seen cumulative transaction volumes reach hundreds of billions of yuan. ICBC executive Zhang Yi, who noted the bank was among the first batch of direct participants on the CBETS platform, encouraged overseas institutions to explore opening local e-CNY enterprise wallets to provide more benefits to foreign firms. Zhang also urged other banks to integrate e-CNY with their own operations, stating, “As the CBETS remains free of charge, it is a very good time for you.”
HSBC reported seeing strong demand from customers for cross-border renminbi settlements. Lewis Sun, managing director and group head of digital currencies, corporate and institutional banking at HSBC, noted that the bank has already launched retail and wholesale e-CNY services in mainland China where corporate clients receive e-CNY directly into operational accounts. Sun observed that transaction volumes under multilateral initiatives like mBridge and CBETS have grown steadily, indicating that corporate clients are using e-CNY in daily operations.
On Monday, Hong Kong’s Financial Services Development Council (FSDC) released a report recommending several actions to cement the city’s role as a multicurrency payment centre. These include optimising regulatory coordination, strengthening payment infrastructure, promoting digital assets and tokenisation, and developing cross-border trust infrastructure. The council stated that allowing different payment solutions to coexist and interoperate would help Hong Kong meet diverse market needs while remaining flexible to evolving technologies and standards.
China began piloting the digital yuan in certain cities in 2019. Earlier this year, the central bank upgraded the currency from a cash equivalent to “digital deposit money,” which allows it to accrue interest like bank deposits. Data from the central bank shows that as of September, approximately 4.3 billion digital yuan transactions worth about 31 trillion yuan had been processed.
