(Yicai Global) Oct. 31 — The People’s Bank of China is cooperating with the Hong Kong Monetary Authority and other financial regulators on the development of central bank digital currencies and is willing to strengthen collaboration in the future, the governor of China’s central bank said at an event today.

Through such partnerships, the PBOC hopes to better serve foreign and domestic needs and to help bolster Hong Kong’s position as an international financial center, Yi Gang said while attending an online event at the Hong Kong FinTech Week 2022.

The e-yuan is a central bank-issued digital currency which is mainly positioned as cash in circulation, or M0 broad money, Yi said. It should be emphasized that the PBOC will continue to provide cash services to meet public demand, he added.

The main purpose of developing the e-CNY is to meet domestic retail needs, enhance financial inclusion and improve the efficiency of the central bank’s currency issuance and payment system, Yi said.

The PBOC will ensure personal information security through advanced technology and strict management, Yi said. By encrypting all stored transaction data and anonymizing sensitive personal information, data will not be accessible to third parties, he said. Without proper legal authorization, no institution or individual will be given access to this information.

As the digital economy develops, more emphasis is being placed on the development of central bank-issued digital currencies. Ninety percent of 81 monetary authorities surveyed by the Bank for International Settlements said that they are looking into a digital form of legal tender.

E-currencies have the potential to enhance efficiency, reduce costs and boost the transparency of cross-border payments, according to a Central Bank Digital Currencies for Cross-Border Payments report released by the Bank for International Settlements, the International Monetary Fund and the World Bank in July.

Editor: Kim Taylor