China explores digital yuan for cross-border transactions

China is exploring ways to use its digital yuan for cross-border transactions to meet market demand, the central bank said on Thursday.

The People's Bank of China (PBOC) has worked with the Hong Kong Monetary Authority (HKMA) on the technical testing of using the digital yuan for cross-border payments on the Chinese mainland and Hong Kong, said Wang Xin, an official with the PBOC, at a press conference.

For this purpose, the PBOC is also cooperating with the HKMA and central banks of Thailand and the United Arab Emirates in a multilateral research project, Wang said.

China's digital yuan testing is making steady progress, with more test scenarios coming into use.

Several Chinese cities, including Beijing, Shenzhen and Suzhou, have piloted this digital currency since last year. Enditem