Exclusive | Hong Kong e-HKD trials explore ‘interesting use cases’ of digital currency in payments, investments: HKMA boss
- Programmable payments to protect consumers’ cash and tokenised assets are some of the scenarios in trials, Eddie Yue says
- The relevant players need more experience with the digital currency before a timeline for launch can be determined, he says
Hong Kong’s trials of a digital currency called e-HKD have showed potential uses in payment, deposit and investment scenarios, but relevant players need more experience before a launch date can be considered, according to the head of the city’s de facto central bank.
In a programmable payment scenario, rules encrypted in the digital currency restrict the use of the money. This could, for example, ring-fence a consumer’s money on deposit with a merchant, protecting it in case of the merchant’s collapse.
Bank of China (Hong Kong) conducted a trial of the feature earlier this month, the lender said on October 3. The bank said it has teamed up with 10 firms allowing customers to use e-HKD to prepay for coupons for facial treatments, gym memberships, classes and medical treatments.