Hong Kong Monetary Authority to Begin CBDC Trials in Q4: Report

The city's de facto central bank will look at use cases and design issues related to a digital currency.

AccessTimeIconSep 20, 2022 at 12:03 p.m. UTC
Updated Sep 20, 2022 at 2:57 p.m. UTC

Jamie Crawley is a CoinDesk news reporter based in London.

The Hong Kong Monetary Authority (HKMA) plans to start trials of its central bank digital currency (CBDC) in the fourth quarter, the South China Morning Post (SCMP) reported Tuesday, citing a media briefing.

Hong Kong's de facto central bank now plans to lay the technology and legal foundations to support the development of "e-HKD" while exploring the use cases and design issues related the digital currency by conducting a series of tests.

HKMA issued a discussion paper in April inviting views on key issues surrounding CBDCs. It received 75 responses from industry bodies, fintech firms, financial institutions and tech companies.

"Overall, the respondents are supportive of the e-HKD initiative and believe that e-HKD has the potential to make payments more effective while supporting the digital economy," the HKMA said on Tuesday.

"At the same time, the respondents also pointed out the need to further examine issues such as privacy protection, legal considerations and use cases."

The central banks of almost every major economy worldwide are studying or developing CBDCs, partly to safeguard their currencies from potential threats posed by privately issued digital currencies.

China is leading the way with its "e-CNY," which had 260 million individual users as of January, with testing set to extend to four of the country's largest provinces in the near future.

Hong Kong has its own financial and judicial systems, separate from the Chinese mainland as part of the “One Country, Two Systems” framework under which Hong Kong is governed.







Read more about

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

CoinDesk - Unknown

Jamie Crawley is a CoinDesk news reporter based in London.

Investing in the Future of the Digital Economy
October 18-19 | Spring Studio, NYC