China and Hong Kong launched the second phase of testing the digital yuan – Bits Media

Mu Changchun, Chairman of the Research Institute of Digital Currencies under the PBOC, said, that China and Hong Kong are launching the second phase of testing a state-owned digital currency.

At the seminar, dedicated to the state and prospects of the international financial center Hong Kong, Mu Chanchun (Mu Changchun) stated, that the People's Bank of China (NSC) and the Hong Kong Monetary Authority (Hkma) successfully completed the first phase of testing cross-border payments using the digital yuan.

At the second stage, it is planned to study the possibility of combining the digital currency system with the fast payment system Faster Payments Service (FPS), and also increase the efficiency of payments by adapting the Central Bank’s digital currency to the needs of the population of China and Hong Kong.

"In the future, When will mainland tourists use the digital yuan to shop in Hong Kong?, currency exchange will be carried out between two wallets, and local sellers will receive money in Hong Kong dollars, therefore there will be no conversion", - said Changchun.

He also reported, what is within mBridge, International Central Bank Initiative to Study Thailand's Government Digital Currencies, UAE, Hong Kong and China, development of the test platform has been completed. Changchun noted, that the “bridge” speeds up and reduces the cost of transactions, and also makes them transparent.

Recall, that in February the Central Banks of China and the UAE joined the “bridge” project for the state cryptocurrencies of Thailand and Hong Kong. About that, that Hong Kong and PBOC regulators are jointly testing state-owned digital currencies, became known last month.