China’s central bank tests virtual yuan across borders

China’s central bank has put its virtual yuan through a new set of paces by allowing select Hong Kong residents to use it to make payments across borders, reported Caixin.

Under a one-day pilot program sponsored by the People’s Bank of China (PBOC), Hong Kong residents could use the central bank-developed digital currency to pay for things in the neighboring city of Shenzhen, across the border between the special administrative region and South China’s Guangdong province, according to state-run newspaper the Shenzhen Special Zone Daily.

Hong Kong residents who regularly travel to Shenzhen can register a digital wallet with a daily transaction limit up to RMB 50,000, after verifying their identity with their mainland travel permit, according to the newspaper’s report.