- The Hong Kong Financial Authority has introduced the launch of its e-HKD pilot program.
- This system is a part of a broader plan by the HKMA to discover the implementation of retail CBDCs.
- 16 companies will take part within the pilot program, together with Ripple Labs and Mastercard.
The Hong Kong Financial Authority (HKMA) has launched its e-HKD pilot program, paving the best way for the eventual deployment of a retail central financial institution digital foreign money (CBDC) in Hong Kong. The pilot program is an element of a bigger city-state plan to discover retail CBDC use circumstances for token asset settlement, offline and programmable funds, and several other different makes use of.
Based on a HKMA press launch, 16 corporations from the finance, funds and expertise sectors will take part within the newest pilot program by the Central Banking Authority of Hong Kong. Based on the record, the businesses embrace main blockchain firm Ripple Labs, Customary Chartered and high cost options suppliers Visa and Mastercard.
The e-HKD pilot program is a key a part of Rail 2 below the Hong Kong Financial Authority’s three-rail method, which lays out the plan and timetable for a possible retail CBDC within the city-state. Beneath Rail 2, HKMA will delve deeply into use circumstances in addition to software, implementation and design points associated to e-HKD.
This section additionally consists of pilot tasks in collaboration with trade stakeholders to evaluate capabilities and achieve real-world expertise. Rail 2 will run parallel to Rail 1, which goals to create the technological and authorized framework to help the implementation of e-HKD. Rail 1 additionally entails drafting legislative adjustments to make CBDC authorized tender in Hong Kong.
Eddie Yue, CEO of the HKMA, stated the pilot program would assist Hong Kong keep its standing as a worldwide monetary heart. “We’re proud of the optimistic suggestions we have obtained and agree with our respondents that we have to dive deep into points like privateness safety and use circumstances,” he added.
