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Hong Kong advances CBDC pilot, bringing e-HKD trials to Phase 2

Published 10/31/2023, 02:12 AM
Updated 10/31/2023, 04:20 AM

The Hong Kong Monetary Authority (HKMA) is gearing up for the second phase of the e-HKD (e-Hong Kong dollar) pilot program as it announced the successful completion of the Phase 1 trial of its in-house central bank digital currency (CBDC).

The HKMA launched the e-HKD pilot program in November 2022 to evaluate the commercial viability of an in-house CBDC as part of its “Fintech 2025” strategy. Phase 1 was dedicated to studying e-HKD in six areas, which include full-fledged payments, programmable payments, offline payments, tokenized deposits, settlement of Web3 transactions and settlement of tokenized assets.

Summary of pilots by category and participants. Source: hkma.gov.hk
e-HKD specimens issued by three note-issuing banks. Source: hkma.gov.hk
Three-rail approach for the potential implementation of an e-KHD. Source: hkma.gov.hk

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