Yu Weiwen, president of the Hong Kong Monetary Authority, stated that the Monetary Authority is working with the Digital Currency Research Institute of the People's Bank of China to study the use of digital renminbi for cross-border payments and make corresponding technical preparations.
The agency pointed out that the introduction of digital currency is to connect the needs of residents, enterprises and financial institutions in the era of digital economy. The central bank digital renminbi is an alternative to the paper currency renminbi and a type of electronic renminbi. It is more convenient than cash and bank card payments, and has legal currency status (that is, national credit behind it) compared to third-party payments. After the central bank's digital currency is launched, the form of financial services may change, and the digital capabilities of financial institutions may be an important factor in future market competition.