The Hong Kong Financial Authority (HKMA) has introduced the graduation of its e-HKD pilot which “will take deep dives into potential use instances in six classes.” The pilot paves the way in which for “the potential implementation of a retail central financial institution digital forex (CBDC),” the central banking establishment defined.
Pilot Program for e-HKD Begins
The Hong Kong Financial Authority (HKMA) introduced Thursday “the graduation of the e-HKD Pilot Programme.” The central banking establishment revealed that 16 companies from the monetary, cost, and expertise sectors have been chosen to take part within the first spherical of e-HKD pilots for 2023. The HKMA detailed:
The pilots will take deep dives into potential use instances in six classes, together with full-fledged funds, programmable funds, offline funds, tokenized deposits, settlement of Web3 transactions, and settlement of tokenized property.
“The HKMA will conduct a sequence of pilots in shut collaboration with varied stakeholders to look at the use instances, in addition to implementation and design points regarding e-HKD,” the financial authority described, including that it goals to share key learnings with the general public at Hong Kong Fintech Week 2023 in November.
The businesses taking part within the pilot program embrace Alipay Monetary Providers, Financial institution of China, China Building Financial institution, Fubon Financial institution, Ripple Labs, Normal Chartered Financial institution, Cling Seng Financial institution, HSBC, Visa, Industrial and Business Financial institution of China, Mastercard Asia/Pacific, and Boston Consulting Group.
Eddie Yue, HKMA’s chief govt, commented: “Whereas the HKMA has not but decided on whether or not and when to introduce e-HKD, we’re excited to kick-start the e-HKD Pilot Programme, which serves as an amazing alternative for the HKMA to collaborate with the trade in exploring revolutionary use instances and maximizing our readiness for a possible e-HKD.”
The Hong Kong Financial Authority revealed its coverage stance on e-HKD in September final 12 months as a part of its “Fintech 2025” technique. Two rounds of market session had been performed: one on high-level technical design and one on key coverage and design points. A complete of 75 responses had been acquired through the session interval.
The HKMA defined on the time that it’ll undertake a three-rail strategy. Rail 1 establishes the technological and authorized foundations for the e-HKD, Rail 2 explores use instances and conducts pilots, and Rail 3 focuses on launching e-HKD primarily based on the outcomes of the earlier phases.
“The e-HKD Pilot Programme is a key element of Rail 2 below the HKMA’s three-rail strategy in paving the way in which for the potential implementation of a retail central financial institution digital forex (CBDC), i.e. e-HKD, sooner or later,” the HKMA famous in Thursday’s announcement.
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