Bank of China HK joins pilot programme to trial use of digital currencies

BOCHK has completed real-value cross border trade of central bank digital currencies.

Bank of China (Hong Kong) or BOCHK is one of the first batch of banks participating in the Project mBridge pilot programme.

Under the programme, banks such as BOCHK will trial the use of central bank digital currencies (CBDCs) and explore development opportunities for CBDCs to be used in a digital economy.

BOCHK’s participation comes after the bank completed real-value cross-border CBDC trades on behalf of corporates with six commercial banks from China, the United Arab Emirates, and Thailand, said Huang Jinuye, general manager, digital currency task force, BOCHK.

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BOCHK also reportedly conducted cross-border real-value transactions  in Hong Kong dollar CBD, carried out prototype verification of Chinese yuan CBDC liquidity provision solutions, and worked with a number of customers to verify the foreign exchange transaction function between different CBDCs, Huang added.

“We will continue to  proactively explore CBDCs and accumulate hands-on experience, collaborating closely with  relevant regulators to play an active role in promoting the development of CBDCs in cross-border  financial services and innovative projects,” Huang said.