Hong Kong Expands e-CNY Use, Plans Higher Wallet Limits

Hong Kong is scaling up its digital yuan infrastructure, adding more merchants accepting e-CNY payments.

Authorities are also exploring raising transaction caps and expanding wallet functionality, which are part of broader efforts to deepen cross-border payment integration with mainland China.

Current Limits Under Review

Hong Kong’s government is working to expand China’s digital currency reach within the territory. Since the pilot program’s expansion in May 2024, the number of local retail merchants accepting e-CNY payments has gradually increased.

Secretary for Financial Services and the Treasury Christopher Hui emphasized the initiative’s strategic importance, stating that the digital renminbi “provides residents of both regions with an additional secure, convenient and innovative payment option, enhancing the efficiency of cross-border payment services and user experience while promoting mutual connectivity between the two places.”

While the Hong Kong Monetary Authority (HKMA) does not operate direct statistics on wallet adoption or merchant coverage, officials have confirmed that discussions with the People’s Bank of China (PBoC) are underway to upgrade wallet capabilities and relax current usage restrictions.

The existing e-CNY wallet framework in Hong Kong imposes a RMB 2,000 ($280) per-transaction limit and an annual cumulative cap of RMB 50,000 ($7,000), with wallet balances capped at RMB 10,000 ($1,400). These restrictions reflect the simplified registration process — users need only a Hong Kong mobile phone number to create a wallet, without requiring mainland bank accounts or real-name verification.

In response to legislative inquiries published on October 8, 2025, the Hong Kong government stated that the PBoC and HKMA are actively exploring arrangements to upgrade e-CNY wallets, intending to increase usage limits and support additional application scenarios.

“The People’s Bank of China and the HKMA are currently exploring arrangements and feasibility for upgrading the digital currency wallet to increase its usage limits and support more application scenarios. As discussions are ongoing, specific proposals and timelines remain to be finalised,” Hui explained.

Questions have been raised about whether the current limits adequately serve Hong Kong residents’ cross-border consumption needs, particularly for business travelers and frequent users. Lawmakers have also pressed for clarity on plans to introduce real-name authentication features and enable higher personal transfer limits, bringing Hong Kong’s wallet infrastructure closer to the expanded functionality available to verified users in mainland pilot cities.

Merchant Adoption and Cross-Border Integration

The HKMA has been encouraging banks to recruit more local retailers to accept e-CNY payments, viewing the digital currency as an additional payment option that enhances cross-border transaction efficiency and user experience. Secretary Hui noted that the HKMA maintains close communication with the PBoC’s Digital Currency Research Institute and mainland operating institutions’ Hong Kong subsidiaries to monitor usage patterns and gather user feedback.

“The HKMA will continue to support the People’s Bank of China in advancing the cross-border pilot programme for digital renminbi in Hong Kong. This includes facilitating broader acceptance among local retailers and exploring additional application scenarios to expand the pilot’s coverage,” Hui stated.

While the authority does not publish detailed merchant distribution data across Hong Kong Island, Kowloon, and the New Territories, officials confirmed that the number of local retail outlets accepting digital RMB is gradually increasing.

Beyond retail payments, Hong Kong is positioning the e-CNY as a tool for broader financial connectivity. The government highlighted its participation in the Multiple Central Bank Digital Currency Bridge (mBridge) project, which reached the Minimum Viable Product stage in June 2024. The platform enables direct settlement between banks in participating jurisdictions, significantly reducing cross-border payment costs. Authorities plan to expand public and private sector participation in mBridge while integrating more commercial banks.

Expanding Application Scenarios

Officials stated that future upgrades will explore extending e-CNY functionality beyond consumer payments, including supply chain finance, cross-border wage payments, and other enterprise-focused use cases. The government emphasized that rolling out these enhancements requires balancing technological readiness, regulatory coordination, and user demand.

The ongoing expansion reflects Hong Kong’s commitment to serving as a testing ground for the e-CNY outside mainland China. Since launching the pilot in May 2024, Hong Kong residents have been able to top up wallets via the Faster Payment System through 17 local retail banks, with cross-border payment support across 26 mainland pilot areas, including cities in the Guangdong-Hong Kong-Macao Greater Bay Area.

As the digital yuan infrastructure matures, observers will watch for concrete policy updates on wallet limit increases and new application rollouts, which could shape Hong Kong’s role in China’s broader CBDC internationalization strategy.