tl;dr
Hong Kong is accelerating its digital yuan (e-CNY) integration, aiming to boost cross-border efficiency with mainland China. Current wallet limits and merchant adoption are under review, with plans to expand application scenarios and enhance financial connectivity through projects like mBridge.
**Hong Kong Expands Digital Yuan Infrastructure to Boost Cross-Border Connectivity**
Hong Kong is accelerating its integration of China’s digital yuan (e-CNY), expanding merchant adoption and exploring upgrades to wallet functionality as part of broader efforts to enhance cross-border payment efficiency with mainland China. The initiative reflects the territory’s growing role as a testing ground for the digital renminbi beyond the mainland, positioning itself as a key node in China’s broader central bank digital currency (CBDC) strategy.
### **Current Limits Under Review**
Since the e-CNY pilot program expanded in May 2024, the number of local retail merchants accepting the digital currency has gradually increased. However, current usage limits remain a point of discussion. Hong Kong’s e-CNY wallets impose a per-transaction cap of RMB 2,000 ($280), an annual cumulative limit of RMB 50,000 ($7,000), and a wallet balance cap of RMB 10,000 ($1,400). These restrictions, while designed to simplify registration (users need only a Hong Kong mobile phone number), have sparked questions about their adequacy for frequent cross-border users, such as business travelers.
Christopher Hui, Hong Kong’s Secretary for Financial Services and the Treasury, emphasized the strategic importance of the e-CNY, stating it “provides residents of both regions with an additional secure, convenient, and innovative payment option.” Officials confirmed ongoing discussions with the People’s Bank of China (PBoC) to upgrade wallet capabilities, including raising transaction limits and supporting more application scenarios. “As discussions are ongoing, specific proposals and timelines remain to be finalised,” Hui noted in response to legislative inquiries in October 2025.
### **Merchant Adoption and Cross-Border Integration**
The Hong Kong Monetary Authority (HKMA) has been actively encouraging banks to onboard more local retailers to accept e-CNY payments. This move aims to enhance cross-border transaction efficiency and user experience, particularly for residents and visitors navigating the Guangdong-Hong Kong-Macao Greater Bay Area. While the HKMA does not publicly disclose detailed merchant distribution data, officials confirmed a steady rise in the number of local retail outlets adopting the digital currency.
Beyond retail, Hong Kong is leveraging the e-CNY to foster broader financial connectivity. The territory is a participant in the Multiple Central Bank Digital Currency Bridge (mBridge) project, which reached its Minimum Viable Product stage in June 2024. This platform enables direct cross-border settlements between banks, reducing costs and improving efficiency. Authorities plan to expand mBridge’s participation to include more public and private sector entities, further integrating Hong Kong into the global CBDC ecosystem.
### **Expanding Application Scenarios**
Future upgrades to the e-CNY infrastructure will explore use cases beyond consumer payments, such as supply chain finance, cross-border wage payments, and enterprise-focused applications. The Hong Kong government stressed the need to balance technological readiness, regulatory coordination, and user demand when rolling out these enhancements.
Since the pilot’s launch, Hong Kong residents have been able to top up e-CNY wallets via the Faster Payment System through 17 local retail banks, with cross-border payment support spanning 26 mainland pilot areas. This infrastructure has positioned Hong Kong as a critical testing ground for the e-CNY’s internationalization, offering insights into its scalability and adaptability.
### **Looking Ahead**
As Hong Kong refines its digital yuan framework, stakeholders are closely watching for concrete policy updates on wallet limit increases and new application rollouts. These developments could solidify the territory’s role as a hub for CBDC innovation, strengthening ties with mainland China while setting a precedent for global adoption. With ongoing collaboration between the HKMA and PBoC, the e-CNY’s expansion in Hong Kong underscores its potential to reshape cross-border finance in the digital age.