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Hong Kong plans to launch trial of e-HKD in fourth quarter, paving way for full digital currency roll-out
- The move marks the city’s latest effort to catch up with other central banks that are launching virtual currencies
- The aim is to eventually roll out a virtual currency the public can use to shop, dine out and make money transfers
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Hong Kong will start testing out a digital coin called the e-HKD from the fourth quarter, paving the way for a virtual currency the public can use in the future to shop, dine out and make money transfers.
The pilot scheme, which will be accompanied by law changes and digital infrastructure to support the e-HKD, marks the city’s latest effort to catch up with other central banks that are launching virtual currencies, the Hong Kong Monetary Authority said in a media briefing on Tuesday.
It follows two rounds of consultation garnering feedback on demand, privacy and other concerns surrounding the launch of a digital coin.
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“Although there might not be an imminent use case for e-HKD, taking into account the findings of our study and the feedback from market consultation and international development, the HKMA will start paving the way for e-HKD implementation and will proceed toward a launch of e-HKD in the future,” said Howard Lee, deputy chief executive of the HKMA, the de facto central bank.
“Many international markets have already started to study the launch of digital currencies. In our market consultation, many commentators expressed worries that Hong Kong needs to catch up with the international trend.”
The pilot runs will involve selected banks, payment companies and other technology firms and will aim to examine the usage of the digital currency among their staff and a small number of clients, Lee said.
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