The digital yuan pilot is expanding in Hong Kong with more banks joining the government-run project.
The Hong Kong Monetary Authority, which is the de facto central bank of the special administrative region, has confirmed that the first group of Hong Kong banks have started participating in the digital yuan pilot program. In particular, Bank of China (Hong Kong), Hang Seng Bank, Standard Chartered, Bank of Communications (Hong Kong), DBS Bank (Hong Kong), and Industrial and Commercial Bank of China (Asia) have joined the program.
The program, which was launched in partnership with the People’s Bank of China, will allow participating banks to issue and distribute digital yuan through local branches, as well as through proposed mobile wallets and ATMs located in Hong Kong.
By joining the program, participating banks will be able to offer payments and settlement services to local customers who wish to use digital yuan for transactions. This could help to expand the use and acceptance of digital yuan in Hong Kong.
The Shanghai-based Digital Currency Research Institute, which is affiliated with the People’s Bank of China, has said that the digital yuan pilot program was designed to test the efficacy and practicality of using digital currency in different context, and to learn more about digital currencies in general.
While there’s still a lot of work to be done to ensure the success of the digital yuan pilot, the involvement of more banks in the program will certainly lend the project more credibility and legitimacy.
