Shenzhen pilots digital RMB use for Hong Kong residents

The city government and the central bank have completed a test that will enable Hong Kong residents to use the digital RMB while on the Chinese mainland, Shenzhen Economic Daily reported Thursday.

The move marks a significant step toward broadening the use of the digital currency and will effectively reduce the costs of cross-border payments for Hong Kong residents traveling to Shenzhen, the report said.

The test was mainly aimed at two groups of Hong Kong residents. The first group was Hong Kong residents who often travel to and from Shenzhen and can use their mainland travel permits for real-name authentication.

The other group was Hong Kong residents who occasionally come to Shenzhen, that is, residents who only hold a Hong Kong ID card, and can open a digital RMB wallet anonymously through a Hong Kong mobile phone number.

“This is my first time to use the digital RMB. The currency exchange and payment procedure is very convenient and smooth,” a woman, surnamed Leung, was quoted as saying.

Leung used the new system to buy a customized necklace worth more than 2,000 yuan (US$304) at a brick-and-mortar store of Shuibei Jewelry Group in Luohu District.

Leung, a Hong Kong resident who has been working in Shenzhen for a long time, successfully opened a digital RMB wallet using a debit card from the Bank of China and completing real-name authentication with her mainland travel permit. A single purchase using the digital RMB wallet is capped at 50,000 yuan for Leung and others who have opened a digital wallet with real-name authentication.