China Expands Digital Yuan (e-CNY) Cross-Border Payments as Hong Kong Deepens Adoption

China’s digital yuan, known as the e-CNY, has entered a new phase of real-world adoption as authorities expand its cross-border use within the Greater Bay Area and deepen its integration into Hong Kong’s payment ecosystem. The initiative reflects Beijing’s broader push to modernise financial infrastructure and promote the digital yuan as a practical tool for retail spending, travel, and cross-border commerce.

Growing Cross-Border Integration

Hong Kong has become the most important testing ground for the international usability of the digital yuan. The Hong Kong Monetary Authority (HKMA) and the People’s Bank of China (PBoC) have expanded the pilot to allow Hong Kong residents to open e-CNY wallets using only local mobile numbers, without requiring a mainland bank account. Funds can be topped up directly through Hong Kong’s Faster Payment System, creating a seamless way for residents and tourists to move money across the border.

This streamlined setup has made e-CNY particularly useful for daily commuters, cross-border shoppers, and business travellers who regularly move between Hong Kong and mainland cities such as Shenzhen, Guangzhou and Dongguan. Officials have highlighted that this simplifies retail spending and makes small-value transactions faster and more efficient.

Increasing Merchant Acceptance

The latest expansion includes a notable rise in Hong Kong merchants accepting e-CNY payments. Hundreds of Circle K convenience stores and FreshUp-operated vending machines now support the digital yuan, signalling a meaningful shift toward practical, day-to-day use. The rollout follows coordinated efforts by banks, payment operators and retail groups to widen acceptance beyond the experimental stage.

By making the digital yuan usable in popular retail locations, authorities are preparing the ground for higher consumer familiarity and wider merchant adoption. This progress also positions Hong Kong as the most advanced offshore testing environment for China’s digital currency.

Wallet Limit Review and Future Upgrades

Hong Kong and mainland regulators are evaluating plans to raise existing e-CNY wallet limits to better serve frequent travellers and business users. Currently, Hong Kong wallets are capped at RMB 2,000 per transaction, with an annual limit of RMB 50,000 and a maximum wallet balance of RMB 10,000.

As usage matures, both sides have expressed interest in expanding these limits and enabling broader applications, including higher-value spending and potential business-oriented transactions. Authorities are also exploring enhanced verification options and additional technical features that will support more advanced use cases over time.

Strategic Importance for the Greater Bay Area

The Greater Bay Area, where millions of cross-border trips occur annually, is the ideal environment to test how a central bank digital currency functions in a complex, multi-jurisdictional setting. With high volumes of cross-border retail activity, the region provides valuable data for the PBoC and HKMA as they evaluate the e-CNY’s performance in real commercial settings.

Beyond retail consumption, the digital yuan is expected to play an increasingly important role in future cross-border payment initiatives. Authorities believe the e-CNY can strengthen financial connectivity, reduce reliance on traditional clearing channels, and complement ongoing regional digital money projects.

Beyond Retail: The Road to Broader Adoption

While the digital yuan’s primary focus has been on small-value retail payments, discussions are underway to extend its use to supply-chain transactions, cross-border wage payments, and small business operations. The pilot is also running in parallel with international CBDC programs such as Project mBridge, which aims to create shared digital settlement rails among multiple central banks.

Analysts note that China is positioning the e-CNY as a future pillar of its financial infrastructure. Though not intended to replace global reserve currencies, the digital yuan offers a strategic advantage in enabling faster, programmable and more resilient payment systems.

Challenges Ahead

Merchant acceptance, privacy concerns and interoperability with international payment systems remain ongoing challenges. Regulatory coordination between Hong Kong and mainland China continues to evolve as both sides refine user experience, merchant coverage and compliance frameworks.

Despite these hurdles, the steady expansion of the e-CNY into sectors with high daily usage suggests that the digital yuan’s presence in Hong Kong will grow organically over the coming years. The current momentum indicates that the e-CNY is moving beyond theoretical pilot work and becoming part of a real, functioning cross-border payment ecosystem.

Key Takeaways

• Hong Kong has expanded e-CNY adoption with increasing merchant coverage, including convenience stores and vending networks.

• Users can top up e-CNY wallets using the Hong Kong FPS system without a mainland bank account.

• Authorities are considering raising wallet limits to support frequent travellers and higher-value use cases.

• The Greater Bay Area serves as the world’s most advanced cross-border CBDC test environment.

• Future applications may include business payments, supply-chain transactions and deeper integration with regional CBDC networks.

• The initiative reflects China’s strategy to modernise payments while strengthening financial connectivity with Hong Kong.

This article incorporates reporting from Caixin Global, the South China Morning Post, Nikkei Asia, Reuters, and the Hong Kong Government’s Information Services Department to ensure factual accuracy and transparency.