After working with the BIS Innovation Hub, the Hong Kong Monetary Authority (HKMA) issued a whitepaper on the technical side of the CBDC retail called e-HKD. The financial institution expects the overall outlook for the project to come by mid-2022.
Hong Kong is one step closer to the CBDC
HKMA has stepped up its efforts to introduce the Digital Hong Kong Dollar (e-HKD). After exploring the potential benefits of the project with partner central banks, the monetary organization released its official whitepaper on the future retail CBDC.
HKMA’s partner was the Hong Kong BIS Innovation Center. Their task was to jointly analyze the details of the issuance and distribution of the central bank’s digital currency. It is worth noting that HKMA introduced the “Fintech 2025” strategy earlier this year, and one of its key focus was increased efforts to develop the CBDC.
Eddie Yue, CEO of HKMA, noted that the move is a significant step in launching digital e-HKD:
“Whitepaper is the first step in our technical research on e-HKD. The knowledge gained from this research, together with the experience we have gained from other CBDC projects, will help in further considering and discussing the technical design of e-HKD. We also look forward to feedback and suggestions from academia and industry to enrich our perspectives. “
Hong Kong and Thailand, a joint CBDC project
Last year, the central banks of the two countries revealed their intention to create a joint CBDC, nicknamed Project Inthanon-LionRock, to facilitate mutual payments.
At that time, HKMA reported that the current payment system in Hong Kong is efficient and as such may not be accepted by the CBDC. However, the Authority believed that cross-border payments needed to be improved and that a digital currency could solve the problem.
Central banks have not provided a time frame for launching their upcoming CBDC for actual transactions. However, they promised to continue the joint project and even invite other countries to the Inthanon-LionRock project.