The Hong Kong Financial Authority (HKMA) has introduced the launch of the second part of its central bank digital currency (CBDC) pilot program, referred to as e-HKD, in response to a Sept. 23 statement.

The second part will delve into superior use instances for digital cash, emphasizing e-HKD and tokenized deposits for people and companies. The primary part centered on testing CBDC functions in home retail funds, offline transactions, and the settlement of tokenized property.

The HKMA said that the initiative has advanced from its unique e-HKD focus and is now rebranded as Undertaking e-HKD+ to align with the altering fintech panorama.

e-HKD Functions

The HKMA has engaged 11 companies from numerous sectors to research e-HKD functions in three fundamental areas, together with tokenized asset settlement, programmability, and offline funds.

A few of the members reportedly concerned in part 2 embrace ANZ, Airstar Financial institution, Aptos Labs, BlackRock, Financial institution of Communications (Hong Kong), ChinaAMC, China Cell, DBS, Fidelity Worldwide, Kasikornbank, and Sanfield.

The HKMA said that these companies will consider the industrial viability of recent digital cash types inside real-world settings, aiming to reinforce accessibility for people and companies.

The outcomes of Part 2 will present insights into the sensible challenges of making a digital cash ecosystem that integrates each publicly and privately issued digital currencies. Undertaking e-HKD+ will additional develop the required expertise and authorized framework to help potential future issuance of e-HKD for each people and companies.

To foster collaboration, the HKMA will set up the e-HKD Trade Discussion board. This platform will allow collaborating establishments to debate frequent challenges and discover the scalable implementation of recent digital cash types. Trade-led working teams will deal with particular subjects, initially specializing in programmability.

Just like Part 1, an e-HKD sandbox might be obtainable for pilot members to facilitate prototyping, growth, and testing of use instances. Throughout Part 2, the HKMA will collaborate carefully with the chosen companies over the following 12 months to share key findings with the general public by the top of subsequent yr.

HKMA chief government Eddie Yue said:

“Undertaking e-HKD+ signifies the HKMA’s dedication to digital cash innovation.  The e-HKD Pilot Programme has supplied a helpful alternative for the HKMA to discover with the trade how new types of digital cash can add distinctive worth to most of the people.  The HKMA will proceed to undertake a use-case pushed method in its exploration of digital cash.”

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