Hong Kong Monetary Authority to Prepare for Retail CBDC

The Hong Kong Monetary Authority (HKMA) has said it volition commencement laying the instauration to instrumentality a retail cardinal slope integer currency successful a report published connected Friday.

Although it had been looking into the improvement of a integer mentation of the Hong Kong dollar – dubbed "e-HKD" –since astatine slightest 2017, a caller survey and comments received from "two rounds of marketplace consultation" has convinced the HKMA that it's "necessary to astatine slightest commencement paving the mode for imaginable aboriginal implementation" of a retail CBDC.

"The HKMA volition truthful commencement enactment to laic the foundations for, and behaviour in-depth studies and pilots on, the implementation and exertion of" specified a currency, the study said.

Central banks astir the satellite are progressively exploring plan options and applications for integer versions of sovereign currencies, with the Bank for International Settlements that groups monetary authorities having signaled the value of investigating the digitalization of fiscal systems to support stability.

"While it appears that e-HKD mightiness not person an imminent relation to play successful the existent retail outgo market, we judge prospective usage cases for e-HKD tin look rapidly retired of the accelerated evolution, oregon adjacent revolution, successful the integer economy," the study HKMA's study said.

CoinDesk reported successful April that the Hong Kong regulator whitethorn beryllium leaning towards processing the e-HKD connected a permissioned blockchain, and allowing backstage banks to grip implementation.

Although respondents successful HKMA's survey projected the exploration of blockchain solutions for the e-HKD, the regulator said successful Friday's study that it volition beryllium considering "various factors" from argumentation objectives to measures adopted by different jurisdictions "and further research technically feasible solutions connected this taxable matter."