The Hong Kong Monetary Authority (HKMA) today published a 50-page White Paper describing the potential of the digital Hong Kong dollar – e-HKD.
According to the document, the main goal of the project is to create a two-tier system. At the first level, the central bank, it will issue and repurchase the digital currency of the Central Bank. The second is aimed at retail. Commercial banks will be able to use e-money backed by rCBDC or CBDC. A detailed view of the currency will be presented by the middle of next year.
Eddie Yue, CEO of HKMA said:
“The White Paper marks the first step in the technical exploration of the digital dollar. The knowledge and experience we have gained in other projects will help develop e-HKD. ”
The White Paper examines the technical side of the digital currency, what is necessary for the issuance and distribution of the digital currency of the Central Bank. In addition, some details of the e-HKD architecture are revealed. It will allow you to track transactions while maintaining privacy for users.
Since 2017, with the support of the LionRock project, the Central Bank of Hong Kong has been exploring the possibilities of the state cryptocurrency. In 2021, the project grew into the Multiple CBDC Bridge. This allowed the use of distributed ledger technology to create a model of a unified payment network. In June of this year, the Office announced the start of work on a government cryptocurrency project under Fintech 2025. It is a financial technology initiative aimed at modernizing Hong Kong’s economic system.
