Today at a fintech event, Eddie Yue, Hong Kong Monetary Authority CEO, outlined its new Fintech 2025 strategy. Central bank digital currencies (CBDC) form the second piece of a five part strategy. And the HKMA confirmed plans to explore a retail Hong Kong dollar or e-HKD in addition to supporting the use of China’s digital yuan.
The monetary authority aims to continue its existing work on wholesale CBDC. In 2019 it starter collaborating with the Bank of Thailand on the Inthanon – LionRock project for cross border payments and released results in 2020. More recently, the People’s Bank of China and the UAE’s central bank joined the initiative along with the BIS, which published a paper on potential multi-CBDC (M-CBDC) models.
That’s already well documented. But today Yue said the HKMA has been working with the BIS exploring retail CBDC and “will begin a study on e-HKD to understand its use cases, benefits, and related risks.”
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