China's special administrative area of Hong Kong will test a digital version its dollar in the early part of this year. This is to prepare for its eventual roll-out. It is trying to catch up to those who have already launched digital currency central banks, such as the People's Republic's digital yuan initiative.
For Q4, trials of digital Hong Kong dollar are planned
In the remaining months of this year, Hong Kong will begin to test a currency called e-HKD. This digital version of the Hong Kong dollars, is being tested in Hong Kong. According to the Hong Kong Monetary Authority, (HKMA), the trials will be made easier by the adoption and construction of the necessary infrastructure.
After consultations to collect feedback on possible demand, privacy aspects and other issues around the issuance central bank digital currencies (CBDC), the pilot phase is now in place. Howard Lee, deputy chief executives of the HKMA (which plays the role of a bank), elaborated:
eHKD might not be in immediate use, but the HKMA will continue to pave the way for eHKD implementation, taking into consideration the results of our study, market consultation, and international development feedback.
A high-ranking official noted that CBDCs are being explored by many jurisdictions. The consultations were held by the banking authority. Participants expressed concern that Hong Kong is behind the international trend and need to catch up.
Selected banks, payment service providers, and tech companies will participate in the trials. Lee explained that these entities will test the use of the digital currency by their employees and clients. Lee explained that the e-HKD was introduced to give customers more options. He stressed that the move would not impact Hong Kong's three note-issuing bank branches.
HKMA will Set a Timeline for eHKD Launch after Tests
Colin Pou, executive director of financial infrastructure at HKMA, stated that the Hong Kong Monetary Authority (HKMA) will determine the timeline for launching e-HKD after the pilot phase. In June 2021, the regulator announced the CBDC plan as part of Fintech 2025. The white paper was published in October, and consultations closed in May.
Hundreds of central banks have studied digital currencies around the globe and taken steps to create theirs. People's Bank of China has been running pilot programs in a variety of cities for its digital yuan, (e-CNY), and recently announced that the expansion of the pilot areas in four of these areas will be made to the provincial level.
Howard Lee, an earlier this month, revealed that Hong Kong also has conducted small-scale tests using the e-CNY in this year's Hong Kong. The region's financial authorities announced last summer that they would link the digital Yuan to their domestic payments system. The HKMA has been working closely with the PBOC and other central banks in Thailand and the United Arab Emirates to facilitate cross-border CBDC payments.
Are you optimistic that Hong Kong will catch up to mainland China with its digital currency project. Please leave your comments below.
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- Yahoo Finance provides information about Barrick Gold Corporation's (GOLD) stock price, news, quote, and history.
- Gold IRA – Add Sparkle to Your Retirement Nest Egg
- Understanding China's Evergrande Crisis – Forbes Advisor
Tips for Investing with Gold
One of the most sought-after investment strategies is investing in gold. There are many benefits to investing in gold. There are many ways you can invest in gold. Some people buy physical gold coins, while others prefer investing in gold ETFs (Exchange Traded Funds).
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By: Lubomir Tassev
Title: Hong Kong to Start Testing Digital Currency in Coming Months
Sourced From: news.bitcoin.com/hong-kong-to-start-testing-digital-currency-in-coming-months/
Published Date: Thu, 22 Sep 2022 08:30:12 +0000