Hong Kong’s CBDC Pilot Advances To Phase-2
The Hong Kong Monetary Authority (HKMA) is advancing its e-HKD pilot program, following the successful completion of Phase 1. The initiative, part of the “Fintech 2025” strategy, aims to assess the commercial practicality of e-HKD.
The HKMA has highlighted the potential of e-HKD in programmability, tokenization, and atomic settlement, which could benefit consumers and businesses. The next phase will build on the success of Phase 1 and explore new use cases, focusing on distributed ledger technology (DLT)-based design due to its interoperability and scalability advantages.
The HKMA’s CBDC program uses a three-rail approach, including foundation layer development, industry pilots, iterative enhancements, and a full launch. The trial program is supported by both public and private organizations, ensuring commercial viability.
(With inputs from Shikha Singh)
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