var TRINITY_TTS_WP_CONFIG={“cleanText”:”Hongkongu2019s eHKD still in progress, while mBridge to launch by mid-2024.u23f8The Hong Kong Monetary Authority (HKMA) says it willu00a0hold backu00a0on providing a definite date to launch its retailu00a0central bank digital currencyu00a0(CBDC) until key players have gathered sufficient u201cexperienceu201d to compete favorably in the payment space.u23f8HKMA CEO Eddie Yue said initial experiments with a retail CBDC, e-HKD, have shown promise. Still, the need remains for technological, legal, and societal clarity. The HKMA began its CBDC trial run in May with 16 commercial banks and payment providers to explore a handful of use cases.u23f8u201cIt is still the beginning of the trial process,u201d said Yue. u201cWe have to find a use case that is better than the current retail payments. Because if you are not either safer, faster, or more convenient, then it will not be doable.u201du23f8The central bank executive revealed that while the pilot has explored several use cases, the functionality of programmable payments stands out from the pack. Under this use case, consumer funds may be u201cring-fencedu201d with a merchant or limited to specific scenarios.u23f8Bank of Chinau00a0(Hong Kong) has led the study with programmable payments, allowing select users to use the test CBDC to pay for gym memberships, healthcare, and spa sessions.u23f8Other potential use cases for the CBDC include its deployment in tokenized deposits and tokenized assets. Already, the HKMA has indicated a desire to dabble in tokenization after the initial wins from its recently completedu00a0Project Evergreen, a bond issuance project using blockchain.u23f8While the CBDC usage faces an uphill task on the domestic front, the HKMA intends to explore its usage in cross-border payments. The HKMA has participated in the Bank for International Settlements (BIS)u00a0mBridgeu00a0pilot, which Yue says is set to release a minimum viable product (MVP) by 2024.u23f8Following the successes of the first pilot, the HKMA says the project is willing to onboard new participants, with up to 20 central banks rumored to be keeping close tabs on the developments.u23f8A harmonious relationship with Chinau23f8Hong Kong and China have beenu00a0exploringu00a0the use of cross-border transactions to improve the state of cross-border transactions between them in recent weeks. In July, it was announced that Chinese tourists visiting Hong Kong will beu00a0allowedu00a0to use their digital yuan wallets to pay for goods and services at select locations.u23f8Conversely, Hong Kong tourists to mainland China can use theu00a0digital yuanu00a0in several retail scenarios. The latest upgrade will allow tourists to top up their digital yuan wallets using Hong Kongu2019s Faster Payment System (FPS) or payment providers likeu00a0Mastercardu00a0(NASDAQ: MA) oru00a0Visau00a0(NASDAQ: V).u23f8To learn more about central bank digital currencies and some of the design decisions that need to be considered when creating and launching it, read nChainu2019s CBDC playbook.u23f8Watch: Utilizing sovereign nodes for CBDCs & micropaymentsu23f8″,”headlineText”:”Hongkongu2019s eHKD still in progress, while mBridge to launch by mid-2024″,”articleText”:”The Hong Kong Monetary Authority (HKMA) says it willu00a0hold backu00a0on providing a definite date to launch its retailu00a0central bank digital currencyu00a0(CBDC) until key players have gathered sufficient u201cexperienceu201d to compete favorably in the payment space.u23f8HKMA CEO Eddie Yue said initial experiments with a retail CBDC, e-HKD, have shown promise. Still, the need remains for technological, legal, and societal clarity. The HKMA began its CBDC trial run in May with 16 commercial banks and payment providers to explore a handful of use cases.u23f8u201cIt is still the beginning of the trial process,u201d said Yue. u201cWe have to find a use case that is better than the current retail payments. Because if you are not either safer, faster, or more convenient, then it will not be doable.u201du23f8The central bank executive revealed that while the pilot has explored several use cases, the functionality of programmable payments stands out from the pack. Under this use case, consumer funds may be u201cring-fencedu201d with a merchant or limited to specific scenarios.u23f8Bank of Chinau00a0(Hong Kong) has led the study with programmable payments, allowing select users to use the test CBDC to pay for gym memberships, healthcare, and spa sessions.u23f8Other potential use cases for the CBDC include its deployment in tokenized deposits and tokenized assets. Already, the HKMA has indicated a desire to dabble in tokenization after the initial wins from its recently completedu00a0Project Evergreen, a bond issuance project using blockchain.u23f8While the CBDC usage faces an uphill task on the domestic front, the HKMA intends to explore its usage in cross-border payments. The HKMA has participated in the Bank for International Settlements (BIS)u00a0mBridgeu00a0pilot, which Yue says is set to release a minimum viable product (MVP) by 2024.u23f8Following the successes of the first pilot, the HKMA says the project is willing to onboard new participants, with up to 20 central banks rumored to be keeping close tabs on the developments.u23f8A harmonious relationship with Chinau23f8Hong Kong and China have beenu00a0exploringu00a0the use of cross-border transactions to improve the state of cross-border transactions between them in recent weeks. In July, it was announced that Chinese tourists visiting Hong Kong will beu00a0allowedu00a0to use their digital yuan wallets to pay for goods and services at select locations.u23f8Conversely, Hong Kong tourists to mainland China can use theu00a0digital yuanu00a0in several retail scenarios. The latest upgrade will allow tourists to top up their digital yuan wallets using Hong Kongu2019s Faster Payment System (FPS) or payment providers likeu00a0Mastercardu00a0(NASDAQ: MA) oru00a0Visau00a0(NASDAQ: V).u23f8To learn more about central bank digital currencies and some of the design decisions that need to be considered when creating and launching it, read nChainu2019s CBDC playbook.u23f8Watch: Utilizing sovereign nodes for CBDCs & micropaymentsu23f8″,”metadata”:{“author”:”Wahid Pessarlay”},”pluginVersion”:”5.7.1″}; |
The Hong Kong Monetary Authority (HKMA) says it will hold back on providing a definite date to launch its retail central bank digital currency (CBDC) until key players have gathered sufficient “experience” to compete favorably in the payment space.
HKMA CEO Eddie Yue said initial experiments with a retail CBDC, e-HKD, have shown promise. Still, the need remains for technological, legal, and societal clarity. The HKMA began its CBDC trial run in May with 16 commercial banks and payment providers to explore a handful of use cases.
“It is still the beginning of the trial process,” said Yue. “We have to find a use case that is better than the current retail payments. Because if you are not either safer, faster, or more convenient, then it will not be doable.”
The central bank executive revealed that while the pilot has explored several use cases, the functionality of programmable payments stands out from the pack. Under this use case, consumer funds may be “ring-fenced” with a merchant or limited to specific scenarios.
Bank of China (Hong Kong) has led the study with programmable payments, allowing select users to use the test CBDC to pay for gym memberships, healthcare, and spa sessions.
Other potential use cases for the CBDC include its deployment in tokenized deposits and tokenized assets. Already, the HKMA has indicated a desire to dabble in tokenization after the initial wins from its recently completed Project Evergreen, a bond issuance project using blockchain.
While the CBDC usage faces an uphill task on the domestic front, the HKMA intends to explore its usage in cross-border payments. The HKMA has participated in the Bank for International Settlements (BIS) mBridge pilot, which Yue says is set to release a minimum viable product (MVP) by 2024.
Following the successes of the first pilot, the HKMA says the project is willing to onboard new participants, with up to 20 central banks rumored to be keeping close tabs on the developments.
A harmonious relationship with China
Hong Kong and China have been exploring the use of cross-border transactions to improve the state of cross-border transactions between them in recent weeks. In July, it was announced that Chinese tourists visiting Hong Kong will be allowed to use their digital yuan wallets to pay for goods and services at select locations.
Conversely, Hong Kong tourists to mainland China can use the digital yuan in several retail scenarios. The latest upgrade will allow tourists to top up their digital yuan wallets using Hong Kong’s Faster Payment System (FPS) or payment providers like Mastercard (NASDAQ: MA) or Visa (NASDAQ: V).
To learn more about central bank digital currencies and some of the design decisions that need to be considered when creating and launching it, read nChain’s CBDC playbook.
Watch: Utilizing sovereign nodes for CBDCs & micropayments
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