Hong Kong Launches Digital Currency Pilot with 16 Major Firms

Updated: 21 May 2023

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The Hong Kong Monetary Authority (HKMA) has launched the e-HKD Pilot Programme, involving 16 selected firms from the financial, payment, and technology sectors.

This pilot program aims to explore potential use cases across six categories and pave the way for the future implementation of a retail central bank digital currency (CBDC).

HKMA Collaborates with Industry Leaders for e-HKD Pilot Programme

The HKMA described conducting a series of pilots and collaborating with various stakeholders to examine the use cases, implementation, and design issues of e-HKD. Key learnings from these pilots will be shared with the public during Hong Kong Fintech Week 2023 in November.

Several notable companies participating in the pilot program include Alipay Financial Services, Bank of China, China Construction Bank, Fubon Bank, Ripple Labs, Standard Chartered Bank, Hang Seng Bank, HSBC, Visa, Industrial and Commercial Bank of China, Mastercard Asia/Pacific, and Boston Consulting Group.

HKMA’s Chief Executive, Eddie Yue, expressed excitement about the e-HKD Pilot Programme, highlighting its potential for collaboration with the industry to explore innovative use cases and enhance readiness for a potential e-HKD introduction.

Hong Kong Monetary Authority Unveils e-HKD Pilot Programme

In a significant development towards digital innovation, the Hong Kong Monetary Authority (HKMA) has revealed its e-HKD Pilot Programme as part of its “Fintech 2025” strategy. This initiative follows two rounds of extensive market consultation, where valuable insights were gathered from 75 responses.

The HKMA’s forward-thinking approach includes a three-rail framework for implementing the e-HKD. Rail 1 entails establishing the necessary technological and legal foundations, while Rail 2 focuses on exploring various use cases through pilot programs. Finally, Rail 3 will concentrate on the actual launch of the e-HKD, drawing on the outcomes of the previous stages.

Emphasizing the significance of the e-HKD Pilot Programme, the HKMA highlighted its role in paving the way for the potential introduction of a retail central bank digital currency (CBDC) in the future. This development signifies Hong Kong’s commitment to staying at the forefront of digital financial transformation and reinforces the region’s status as a leading global fintech hub.

Ripple Launches CBDC Platform, Revolutionizing Central Bank Digital Currencies with Enhanced Blockchain

Ripple has made an exciting announcement in response to the global trend of countries exploring Central Bank Digital Currencies (CBDCs). With over 90% of nations engaged in developing and implementing CBDCs to enhance financial inclusion and streamline payment processes, Ripple is introducing the Ripple CBDC Platform.

This innovative solution caters to central banks, governments, and financial institutions, enabling them to issue their CBDCs seamlessly. By harnessing the power of blockchain technology used on the XRP Ledger (XRPL), this enhanced platform empowers users to efficiently manage and customize the entire life cycle of fiat-based CBDCs, including transactions and distribution.

The Ripple CBDC Platform allows central banks and governments to advance digitization in their financial services and extend access to unbanked individuals worldwide. Surangel Whipps Jr., President of the Republic of Palau, expressed his commitment to financial innovation and technologies, stating that partnering with Ripple to develop their national digital currency will offer greater financial access to the citizens of Palau.