China Expands e-CNY Access as Banks Explore Wallets for Foreign Firms

China is extending its central bank-backed digital currency network to offshore institutions, including Hong Kong branches, as work begins to widen e-CNY access beyond domestic operators.

The expansion is also linked to efforts by banks to offer local e-CNY wallets to foreign firms, a step aimed at deepening cross-border integration.

Offshore access under development

“We currently have 30 domestic banks as e-CNY operators. Right now we’re working to extend this capability to offshore banks,” Lu Yuan, deputy head of the People’s Bank of China’s digital currency research institute, said on a panel at Hong Kong’s Fintech Week.

Lu said the plan could soon allow branches of existing operators in Hong Kong to open e-CNY accounts for companies and individual clients.

“We hope in the very near future that the branches of the incumbent operators in Hong Kong could also open e-CNY accounts for their enterprises and individual clients,” he said.

Platform designed for overseas banks

The upgraded CBETS platform allows overseas banks to process digital payments around the clock without overhauling their legacy information-technology systems.

The platform is part of Beijing’s broader effort to connect offshore institutions to its digital currency network while supporting cross-border payment activity.

The proposed access for foreign firms and clients would extend the use of e-CNY beyond the existing domestic bank operator network and bring Hong Kong branches into that expansion.

Source: South China Morning Post