Hong Kong Monetary Authority (HKMA) and the Digital Currency Institute of the People’s Bank of China (PBoC) have announced that they are testing the use of the digital yuan for cross-border payments. It has been reported that last week, the HKMA staff confirmed that the first phase of testing for the currency’s cross-border use had been successful. The initial tests involved multiple parties, including selected merchants and a bank designated by mainland Chinese authorities.
Blockchain has received a fresh endorsement from China in the form of a development pact with the central bank of Hong Kong. On November 6, in a news post, the Hong Kong Monetary Authority (HKMA) confirmed that it had signed a Memorandum of Understanding (MoU) with a subsidiary of the People’s Bank of China (PBoC). However, the deal aims to create a Proof-of-Concept for a trade finance platform from Q1 2020, linking two existing projects: the HKMA’s eTradeConnect and the PBoC