Hong Kong Starts Trial Of E-HKD Digital Money

Hong Kong is starting to try CBDC. (Photo; Doc. Inside Bitcoin)

JAKARTA - Hong Kong is entering a new chapter in the development of the Central Bank Digital Currecies (CBDC) by launching the second phase of the digital Hong Kong dollar (e-HKD) trial program. This stage will dig deeper into previously identified use cases, such as programming and tokenization, as well as exploring new unsurvered applications.

The Monetary Authority of Hong Kong (HKMA) announced on March 14 that it will expand its scope of e-HKD research, based on foundations that have been built during the first phase ended in September 2023. The first phase has successfully explored various smart crypto asset functionalities, and now HKMA is ready to further investigate the use cases.

With the establishment of a new pilot space, supported by Project Ensemble focused on wholesale CBDC, HKMA hopes to facilitate interoperability studies and interbank completions between e-HKD and other token forms. The experience of these two experimental trial stages, together with results from Project Ensemble, is expected to accelerate the study process for the potential CBDC implementation.

Reported by NewsBitcoin, Finance Secretary Paul Chan, in a city budget presentation for 2024-2025, has indicated Hong Kong's plans to expand Web3 initiatives and digital yuan integration. This signifies Hong Kong's commitment to modernizing its financial infrastructure and spearheading innovations in the global financial ecosystem.

In addition, HKMA has also taken progressive steps by introducing a stablecoin test room. This space is designed to allow interested institutions to test the issuance of stablecoins according to the guidelines and rules set.

With these steps, Hong Kong not only strengthens its position as a global financial hub but also paves the way for a more inclusive and efficient financial future. Active involvement in CBDC research and development shows Hong Kong's long-term vision of leveraging the latest financial technology to improve its financial system.

This second stage is not only important for Hong Kong but also provides valuable insights for other countries that are exploring the potential of CBDC. With crypto assets increasingly becoming the main focus in global financial discussions, this HKMA initiative marks a significant step towards a new era in digital finance.