The People’s Bank of China Collaborates with Hong Kong and Macao to Boost Cross-Border Fintech Applications

Integrating Fintech Regulatory Tools

The People’s Bank of China (PBOC) has announced its plans to strengthen cross-border fintech applications by integrating its fintech regulatory tools with Hong Kong and Macao. Deputy Governor Zhang Qingsong revealed this initiative during the HK FinTech Week, emphasizing collaboration with the Hong Kong Monetary Authority (HKMA) and the Monetary Authority of Macao. The integration will include the adoption of HKMA’s Fintech Supervisory Sandbox, aimed at fortifying cross-border fintech applications.

Facilitating the Use of e-CNY

As part of this collaboration, Octopus Cards Ltd and the Bank of China (Hong Kong) (BOCHK) will play a crucial role in facilitating the use of e-CNY in Hong Kong. The Financial Services and the Treasury Bureau will provide support for this endeavor. The PBOC’s Shenzhen branch has been actively promoting e-CNY, organizing 73 events and allocating 570 million yuan ($77.9 million) to drive adoption. Additionally, BOCHK has already launched e-CNY services.

Promoting Cross-Border Applications

The Bank of China (Hong Kong) is leading efforts in Hong Kong to increase the use of e-CNY through large-scale cross-border applications, with a primary focus on transactions involving mainland visitors. Building upon its successful 2020 cross-border pilot projects, the bank is exploring the use of e-CNY to top up Octopus cards, aiming to streamline currency exchanges and retail transactions. Octopus Group CEO Tim Ying Tien-chi highlighted the convenience of shifting from physical cards to the Octopus app for users.

Boosting Financial Innovation in the Greater Bay Area

The PBOC’s initiative seeks to foster financial innovation in the Guangdong-Hong Kong-Macao Greater Bay Area and promote inclusive finance through the use of the digital yuan. By integrating fintech tools and collaborating with Hong Kong and Macao authorities, the PBOC aims to create a seamless and efficient cross-border fintech ecosystem.

This article provides comprehensive insights into the People’s Bank of China’s initiative to enhance cross-border fintech applications by collaborating with Hong Kong and Macao. By integrating fintech regulatory tools and promoting the use of e-CNY, this collaboration aims to drive financial innovation and streamline transactions in the Greater Bay Area.