The Hong Kong Monetary Authority Is Seeking Comments On The Retail CBDC.
The Hong Kong government is looking into design considerations like issuance, interoperability with other payment systems, and privacy and data protection.
The Hong Kong Monetary Authority (HKMA) has released a discussion paper seeking input on the fundamental problems surrounding a central bank digital currency for consumers (CBDC).
The “e-HKD: A policy and design perspective” document from the region’s de facto central bank examines the policy and design considerations around a digital Hong Kong dollar.
The authority is looking at the issuing method, interoperability with other payment systems, as well as privacy and data security. The HKMA previously investigated the technical aspects of issuing a CBDC and released its results in October of last year.
The resulting report looked into different architectural and design possibilities for the infrastructure that will be used to distribute e-HKD.
Almost every major economy’s central bank, including Hong Kong‘s, is studying or developing CBDCs, in part to future-proof their currencies against potential threats posed by increased use of privately issued digital currencies.
China’s digital yuan, or eCNY, is leading the way, with 260 million individual users as of January.
As part of the “One Country, Two Systems” framework under which Hong Kong is governed, the region retains its own financial and legal systems, among others, apart from those on the Chinese mainland.
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