Hong Kong Conducts A Series Of Trials Of CBDC

Eddie Yue Wai-Man, director of Hong Kong’s de facto central bank, the Hong Kong Monetary Authority (HKMA), said the HKMA would conduct a series of trials of its central bank digital currency (CBDC) under testing, the e-HKD, with banks and technology businesses in the fourth quarter of this year.

According to a Thursday story from Hong Kong’s South Morning China Post (SCMP), the experiments aim to find the best use case for the digital Hong Kong dollar.

Electronic retail payments are fully established in Hong Kong, according to Yue in an interview with SCMP. Yue said:

“If we want the public to adopt the e-HKD, we need to have a suitable use case that can show that the CBDC is superior or more convenient, or cheaper.” 

Yue questioned the need for a retail CBDC at a public consultation in April.

In September, the HKMA modified the CBDC launching roadmap, indicating that it intends to initially establish a wholesale e-HKD platform for testing and researching use cases before the final public launch.

Allowing payments with smart devices such as watches, making cross-border payments easier, and striking a balance between data privacy and control are all factors that could help the Hong Kong retail CBDC, according to Benjamin Quinlan, CEO and managing partner of financial strategy consulting firm Quinlan & Associates, in a public post on LinkedIn on Thursday.

As reported by CoinCu, Sweden’s central bank, Sveriges Riksbank, is testing fast payments using retail cross-border CBDC.

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Harold

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