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Hong Kong is pushing ahead with its exploration of a retail central bank digital currency, launching a discussion paper on the policy and design aspects of a potential e-HKD.
Last year the Hong Kong Monetary Authority released a technical white paper on a possible e-HKD, looking at design options for issuing and distributing retail CBDCs, including an arrangement that allows transaction traceability in a privacy-amicable manner.
Now, the HKMA is moving on to other issues, including the potential benefits and challenges of a CBDC, design considerations such as issuance mechanism, interoperability with other payment systems, privacy and data protection and legal considerations, as well as use cases.
Eddie Yue, chief executive, HKMA, says: “We strongly encourage the public and the industry to take part in this important consultation and share their views with us. The comments received would help us formulate the strategy for best positioning our financial market in the rapidly evolving rCBDC space.”
While Hong Kong has still not made a final decision on an e-HKD, the island has agreed to a pilot programme for China’s digital yuan.
Financial Services
