The Hong Kong Monetary Authority is exploring the feasibility of issuing a digital currency for the city, joining central banking efforts worldwide to create electronic money.
A paper exploring the feasibility of issuing a retail-focused central bank digital currency (CBDC) will be delivered within 12 months, according to the HKMA at a recent media briefing.
Issues that will be considered in the paper include potential use cases, data privacy, anti-money laundering standards and more.
E-HKD and E-Yuan Link
In addition, HKMA officials also announced a new trial to explore how Hong Kong residents can top up a digital yuan wallet using the city’s local payment system.
«People are now a lot more used to digital payments and if other central banks are exploring possible use cases for CBDCs […] you have to try out to see whether you can make it successful,» said HKMA chief executive Eddie Yue at the briefing.
This marks the second stage of e-CNY trials in Hong Kong following a smaller scale trial also focused on the usage of digital yuan wallets in Hong Kong.