Digital RMB is opening the test of cross border payment technology

Time:2021-4-27

Yu Weiwen, President of the Hong Kong Monetary Authority, said in an article today that the HKMA and the digital currency Research Institute of the people’s Bank of China are currently studying the technical test 920073 of using digital RMB for cross-border payment and making corresponding technical preparations.

Yu Weiwen said that although domestic payment services around the world have been highly digitized, the development of micropay cross-border payment services has been lagging behind. In addition to some transfers through the same bank or platform, other cross-border payments generally have the problems of long time, high cost and low transparency. The reasons lie in the different operating time zones, the different ways of implementing international standards, and the different technical standards of payment systems.

Mr Yu said that the HKMA has been actively promoting faster and safer cross-border payment by developing financial infrastructure, providing a multi currency and multi-level platform, and connecting the payment system with the surrounding regional and international systems. In addition to giving full play to and continuing to develop the advantages of the existing financial infrastructure, the HKMA is also committed to studying the application of new financial technologies in cross-border payment.

“Last year, together with the Central Bank of Thailand, we launched a study to use the central bank’s digital currency and blockchain platform to solve various problems in cross-border payment.” Yu Weiwen said that the joint research has now entered the second stage, including exploring specific business application schemes, as well as the operability and extensibility of the platform (i.e. expanding to three or more central bank digital currencies).
Yu Weiwen believes that in the long run, with the help of the international trend of strengthening cooperation on cross-border payment, there is an opportunity to develop a regional cross-border payment platform.

Mr Yu said there had been an encouraging development in cross-border payments recently“ The HKMA and the digital currency Research Institute of the people’s Bank of China are studying the technical test of using digital RMB for cross-border payment and making corresponding technical preparations. ” Yu Weiwen said that the use of RMB in Hong Kong is very common, and digital RMB is positioned as cash in circulation, which will bring greater convenience to tourists from both places. Although there is no timetable for the launch of digital RMB, it is believed that it will provide more payment options for residents of both places who need cross-border retail consumption in the future.