The HKMA has released a technical white paper on their future retail CBDC, which aims to explore the specifics of the Hong Kong electronic dollar.
After working with the BIS Innovation Center, the Hong Kong Monetary Authority (HKMA) has published a technical whitepaper on CBDCs for the retail sector entitled “e-HKD: A Technical Perspective”. The financial institution is expected to issue a preliminary statement on the project in mid-2022.
The HKMA has redoubled its efforts to introduce the Hong Kong digital dollar (e-HKD). After discussing the potential benefits of the project with peer central banks, the currency organization released its official white paper on the future of the CBDC for retail clients.
The white paper differs from other similar papers in that it shows the technical architecture of financial solutions. According to the announcement, locals can look forward to their tentative views on the Hong Kong electronic dollar before the summer of 2022.
Mr. Eddie Yue – Chief Executive of the HKMA – noted that the move represents a significant step towards launching a future digital e-HKD:
“The Whitepaper marks the first step of our technical exploration for the e-HKD. The knowledge gained from this research, together with the experience we acquired from other CBDC projects, would help inform further consideration and deliberation on the technical design of the e-HKD. We also look forward to receiving feedback and suggestions from the academia and industry to enrich our perspectives.”
Hong Kong And Thailand with a Joint CBDC Project
Last year, the central banks of the two countries, Hong Kong and Thailand, announced that they intended to set up a joint CBDC called Inthanon-LionRock to facilitate efficient payments between themselves.
At the time, the HKMA stated that the current payment system in Hong Kong was very efficient. Therefore, CBDC does not need to be introduced for domestic settlements. However, the authorities believe that cross-border payments need to be improved and digital currencies can help solve the problem.
The central bank did not provide a timetable for the introduction of the upcoming CBDC for actual transactions. However, they vowed to continue the joint project and add more countries to the Inthanon LionRock project.