Asian Games Prompt China to Enhance Digital Yuan Features for Hong Kong Visitors

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Published: October 10, 2023

In the run-up to the Asian Games, China has unveiled two enhancements to its central bank digital currency (CBDC). These changes facilitate Hong Kong travellers to replenish their digital yuan wallets via Hong Kong’s Faster Payment System, as well as through Visa or Mastercard accounts.

Although integration efforts between Hong Kong and the digital RMB have been ongoing for three years, this fresh modification paves the way for cross-border transactions. Hong Kong citizens traveling to mainland China can now conveniently recharge their Digital RMB wallets leveraging the Hong Kong Faster Payment System. These adjustments aim to provide users with improved account management, swifter transaction pathways, and reduced transactional fees.

The infrastructure behind this system is the handiwork of the Digital Currency Research Institute of the People’s Bank of China, while the Hong Kong Monetary Authority (HKMA) spearheads the “FPS” fast payment system. Concurrently, pilot programs are in progress for mainland citizens to utilise digital RMB wallets in Hong Kong.

The secondary update brings forth a ‘pre-load and spend’ mechanism. While China predominantly relies on its indigenous card network, UnionPay, the omnipresence of Visa and Mastercard in the Western world isn’t mirrored in China. Though foreign visitors could previously employ their cards for digital RMB transactions, this method had its limitations in speed due to immediate charging at the transaction point.

With the recent modifications, Visa and Mastercard users can preload a specified amount into their digital RMB wallets, ensuring expedited payments during their mainland visits. An additional feature allows an auto-recharge setting; the system can automatically draw from the user’s bank account to refill the digital wallet when funds run low.

Notably, this isn’t China’s inaugural instance of leveraging a global sports festivity to spotlight its CBDC advancements. The nation had previously accentuated its digital currency during the 2022 Beijing Winter Olympics.

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