Today the Hong Kong Monetary Authority (HKMA) unveiled its central bank digital currency (CBDC) pilot program for the e-HKD. Sixteen banks and payment firms will collaborate across a dozen use cases.
In September 2022, the central bank outlined its three-pronged approach to developing a CBDC, although it has yet to decide to proceed. The first element was the legal foundation and the technical infrastructure for a wholesale layer for its CBDC. The pilot launch means the design of that layer is complete, and it expects to take two to three years to develop it. The other elements are the current pilot phase followed by a potential implementation approach.
Most of Hong Kong’s largest banks are involved in the pilots, with HSBC and Hang Seng Bank involved in two a piece. It also includes several payment technology firms, including Alipay (HK), Ripple, Gieseck+Devrient (G+D), Visa and Mastercard.
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