The Hong Kong Monetary Authority (HKMA) has published a report that a retail central bank digital currency (CBDC) could bring value to the payments ecosystem.
The Hong Kong Monetary Authority (HKMA) has published a report that a retail central bank digital currency (CBDC) could bring value to the payments ecosystem and enable new economic transactions. However, the HKMA emphasized the need for further investigation and evaluation to determine its large-scale applications.
The authority has not made a decision on introducing a digital Hong Kong dollar (e-HKD) but has been striving to position Hong Kong as a virtual-asset hub through regulatory reforms and licensing crypto trading platforms.
The pilot program, known as Project e-HKD, identified three main areas where an e-HKD could add value: programmability, tokenization and atomic settlement. However, the report highlighted that the pilots were conducted on a small scale, and potential frictions need to be addressed before implementation.
This comes as Hong Kong authorities are revising its crypto policies, likely in response to one of the largest crypto scandals to date, involving the crypto exchange JPEX.
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