1 year ago
The Hong Kong Monetary Authority (HKMA) remains undecided connected making a argumentation determination regarding the instauration of a retail cardinal slope integer currency (CBDC) aft concluding the archetypal aviator task of the e-HKD.
The HKMA noted that portion CBDCs person the imaginable to connection unsocial benefits successful definite areas, further probe and probe are indispensable to ascertain whether their implementation would importantly amended the monetary system
The HKMA added that CBDCs are not a cure-all for the inefficiencies recovered successful the existent system, arsenic galore of those problems stem from bequest processes that cannot beryllium fixed via technology.
Project e-HKD
As a cardinal portion of its “Fintech 2025” strategy aimed astatine advancing Hong Kong’s integer fiscal infrastructure, the HKMA has been actively studying the imaginable of wholesale and retail CBDCs.
The e-HKD Pilot Programme was launched successful November 2022. The HKMA and manufacture stakeholders collaboratively executed it to research and measure the commercialized feasibility of assorted usage cases for an e-HKD.
Phase 1 of the programme rigorously investigated imaginable home and retail usage cases successful six chiseled categories: full-fledged payments, programmable payments, offline payments, tokenized deposits, colony of Web 3 transactions, and colony of tokenized assets.
A full of 16 firms from the financial, payment, and exertion sectors were selected to enactment successful the experiments.
As a cardinal portion of its “Fintech 2025” strategy aimed astatine advancing Hong Kong’s integer fiscal infrastructure, the HKMA has been actively studying the imaginable of wholesale and retail CBDCs.
According to the report, CBDCs person the imaginable to facilitate faster, much cost-effective, and much inclusive transactions. They besides unlock caller types of economical transactions.
However, realizing specified unsocial worth connected a ample standard depends connected marketplace improvement and further investigation. Additionally, immoderate existing inefficiencies are profoundly rooted successful longstanding concern norms and processes alternatively than technological shortcomings.
Thus, portion e-HKD holds the committedness of leveraging caller technologies, it whitethorn not beryllium a panacea for each inefficiencies, the regulator wrote.
Further probe needed
At present, the HKMA has not committed to a argumentation determination concerning the instauration and timing of an e-HKD, choosing to support a prudent stance.
The regulator added that immoderate imaginable motorboat of a CBDC needs to see the roles that the HKMA and the manufacture would play successful its implementation and operation. Additionally, considerations regarding policy, method design, and ineligible aspects volition beryllium integral to immoderate aboriginal developments successful this regard.
The watchdog wrote that the archetypal signifier of the e-HKD Pilot Programme has identified respective areas that warrant further study.
In the upcoming phases of the program, the HKMA volition delve deeper into these concern and implementation issues, continuing its exploration of the possibilities of a retail CBDC.
The station Future of CBDCs successful Hong Kong uncertain arsenic aviator programme concludes appeared archetypal connected CryptoSlate.
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