The Hong Kong Financial Authority (HKMA) has introduced the launch of the second section of its central financial institution digital foreign money (CBDC) pilot program, generally known as e-HKD, based on a Sept. 23 assertion.
The second section will delve into superior use circumstances for digital cash, emphasizing e-HKD and tokenized deposits for people and companies. The primary section centered on testing CBDC functions in home retail funds, offline transactions, and the settlement of tokenized belongings.
The HKMA acknowledged that the initiative has advanced from its authentic e-HKD focus and is now rebranded as Mission e-HKD+ to align with the altering fintech panorama.
e-HKD Functions
The HKMA has engaged 11 companies from varied sectors to analyze e-HKD functions in three predominant areas, together with tokenized asset settlement, programmability, and offline funds.
Among the individuals reportedly concerned in section 2 embody ANZ, Airstar Financial institution, Aptos Labs, BlackRock, Financial institution of Communications (Hong Kong), ChinaAMC, China Cell, DBS, Constancy Worldwide, Kasikornbank, and Sanfield.
The HKMA acknowledged that these companies will consider the business viability of recent digital cash kinds inside real-world settings, aiming to boost accessibility for people and companies.
The outcomes of Section 2 will present insights into the sensible challenges of making a digital cash ecosystem that integrates each publicly and privately issued digital currencies. Mission e-HKD+ will additional develop the required expertise and authorized framework to help potential future issuance of e-HKD for each people and companies.
To foster collaboration, the HKMA will set up the e-HKD Business Discussion board. This platform will allow collaborating establishments to debate widespread challenges and discover the scalable implementation of recent digital cash kinds. Business-led working teams will handle particular subjects, initially specializing in programmability.
Just like Section 1, an e-HKD sandbox shall be accessible for pilot individuals to facilitate prototyping, growth, and testing of use circumstances. Throughout Section 2, the HKMA will collaborate intently with the chosen companies over the following 12 months to share key findings with the general public by the tip of subsequent 12 months.
HKMA chief govt Eddie Yue acknowledged:
“Mission e-HKD+ signifies the HKMA’s dedication to digital cash innovation. The e-HKD Pilot Programme has supplied a useful alternative for the HKMA to discover with the trade how new types of digital cash can add distinctive worth to most of the people. The HKMA will proceed to undertake a use-case pushed strategy in its exploration of digital cash.”