MarketsHong Kong to start testing digital currency in the...

Hong Kong to start testing digital currency in the coming months

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will area Hong Kong Special Administrative In China It is testing a digital version of the dollar early this year, in preparation for its eventual rollout.

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The region is trying to catch up with currencies already launching central bank digital currencies, including the People’s Republic with its digital yuan project.

Hong Kong dollar digital trials planned for Q4

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intends Hong Kong start testing a coin called e-HKDIt is a digital embodiment of a dollar Hong Kongin the remaining months of the year.

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This announced Hong Kong Monetary Authority (HKMA)Quoted from the newspaper South China Morning PostThe trials will be facilitated by adopting legislative amendments and building the necessary digital infrastructure to support the project.

The beta phase follows consultations conducted to gather feedback on potential application, privacy aspects, and other issues that may arise around the release of Central Bank Digital Currency (CBDC).

And he explainedHoward Lee”, Executive Vice President of the Capital Markets Authority, which performs the role of the central bank:

Although there may not be an imminent use case of digital local currency, considering the results of our study and feedback from international market and development consultancy, the Monetary Authority will begin to pave the way for the implementation of the Hong Kong digital currency, and will move forward towards its launch.

The senior official also noted that several jurisdictions are already exploring the launch of primary merchandise digital currencies.

On the other hand, the participants in the consultations conducted by the banking authority expressed their concerns that Hong Kong It lags behind and needs to keep up with the international trend. The trials will include select banks, payment service providers and technology companies.

He also explained to me that these entities would consider the use of digital currency among their employees and a small number of customers. The Executive Vice President added:

“The purpose of introducing the new digital currency is to provide more options for the customer.”

He also stressed that this step will not affect the three banks that issue banknotes in Hong Kong.

The Monetary Authority is working on adjusting the schedule for launching the national digital currency after the tests

He said “Colin Poe”, Executive Director of Financial Infrastructure in Hong Kong, said that after the pilot phase, the Monetary Authority will determine the timetable for launching the electronic country system.

The organizer first announced a plan CBDC in june 2021As part of the Finn Tig strategy Fintech 2025. A white paper was issued in October and consultations ended in May.

It is worth noting that dozens of central banks around the world are studying digital currencies and taking steps to create their own.

and runs People’s Bank of China (PBOC) beta software for Digital Yuan (e-CNY) in a number of cities and recently announced the expansion of the pilot area in four of them to the district level.

conducted Hong Kong Also small-scale tests with the digital yuan this year, he revealed.Howard Lee“Earlier this month.

Last summer, the region’s financial authorities said they would link the digital yuan to the local payments system. Besides its cooperation with People’s Bank of China .

Also, the Capital Markets Authority works with central banks in Thailand wafor the United Arab Emirates On cross-border digital currency payments to central banks.

Source: Crypto Arabia

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William
William
I am a news writer at 24Happenings, where I help promote and write about events that matter to young professionals. I have worked in media for over a decade, most recently as an anchor in a small town in upstate New York. In my spare time, I like to read, cook simple meals, and watch DirecTV originals.

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