- The Hong Kong Financial Authority introduced the launch of the e-HKD pilot program.
- This system is a part of a broader plan to discover the introduction of a retail CBDC by the HKMA.
- The pilot program could have 16 firms, together with Ripple Labs and Mastercard.
The Hong Kong Financial Authority (HKMA) has launched an e-HKD pilot program, paving the way in which for the potential introduction of a Retail Central Financial institution Digital Forex (CBDC) in Hong Kong. This pilot program is a part of a broader plan by city-states to discover retail CBDC use instances in a wide range of functions, together with tokenized asset funds, offline funds, and programmable funds.
Hong Kong’s central banking establishment’s newest pilot program will contain 16 firms from the monetary, fee and expertise sectors, in response to a HKMA press launch. In line with the checklist, these firms embody blockchain big Ripple Labs, Customary Chartered, and high fee options suppliers Visa and Mastercard.
The e-HKD pilot program is a crucial a part of Rail 2 below the Hong Kong Financial Authority’s 3-rail strategy, presenting a roadmap and timeline for potential retail CBDCs within the city-state. Following Rail 2, HKMA will delve deeper into use instances, functions, implementations and design points associated to e-HKD.
This section additionally features a collection of pilots working with trade stakeholders to evaluate feasibility and acquire real-world expertise. Rail 2 will run parallel to Rail 1 and goals to put the technical and authorized basis to assist the implementation of e-HKD. Rail 1 additionally contains legislative change preparations to make CBDC authorized tender in Hong Kong.
HKMA CEO Eddie Yue stated the pilot program will assist Hong Kong keep its standing as a worldwide monetary hub. “We welcome the optimistic suggestions now we have acquired and agree with respondents that we have to dig deeper into points corresponding to privateness safety and use instances,” he added.