Hong Kong launches e-HKD pilot program with 16 companies

Share IT

Key takeaways:

  • The pilot program for the e-HKD’s central bank digital currency (CBDC) was presented by the Hong Kong Monetary Authority (HKMA). 
  • Over a dozen use cases, sixteen banks and payment companies will participate.

The pilot program for the digital Hong Kong dollar (CBDC) has begun, according to the Hong Kong Monetary Authority (HKMA). The launch underlines the Asian nation’s dedication to integrating the use of digital currencies into its financial system.

This change is viewed as a strategic step leading to a potential retail Central Bank Digital Currency (CBDC), or e-HKD, launch in the future. The HKMA has not yet made up its mind whether or not to formally introduce the e-HKD at this time.

16 companies, spanning financial, payment, and technology sectors, have been chosen for Hong Kong’s e-HKD pilot program. The pilot studies will explore applications in six categories: comprehensive payment services, programmable payment systems, offline payment options, tokenized deposit mechanisms, Web3 transaction settlements, and tokenized asset settlements. Ripple will participate in the pilot program by showcasing a real estate asset tokenization solution and unveiling its CBDC platform.

The e-HKD (electronic Hong Kong dollar) pilot project will have a variety of prominent figures from the financial, payment, and ICT sectors as operational partners. HSBC, Standard Chartered, the state-owned Bank of China, the China Construction Bank, the Industrial and Commercial Bank of China, and others are among them.

While the HKMA has not yet decided whether or when to release the e-HKD, Eddie Yue, the HKMA’s chief executive, said in a statement on Thursday following the inauguration, “We are excited to kick-start the e-HKD Pilot Programme.”

HSBC, Standard Chartered Bank, and Bank of China (Hong Kong) will participate in Hong Kong’s trial of the digital currency. The de facto central bank will release a restricted quantity of the digital currency within a controlled experimental environment known as a sandbox. This will allow the participating companies to test the infrastructure, security, and operational aspects of the digital currency.

It is important to note that this development in Hong Kong’s CBDC landscape comes a month after Hong Kong’s Financial Regulator announced to release crypto licensing guidelines in May. 

The HKMA is expected to publish a report in November detailing the outcomes of the pilot program, according to Lee. However, there is currently no confirmation regarding the exact timeline for the full implementation of e-HKD.

Share IT
Aadrika Sharma
Aadrika Sharma

I enjoy writing and try to learn new things every passing day!

Get Daily Updates

Crypto News, NFTs and Market Updates

Claim Your Free Trading Guide

Sign up for newsletter below and get your free crypto trading guide.

Can’t find what you’re looking for? Type below and hit enter!