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Hong Kong takes another step on e-HKD as HKMA seeks feedback on benefits, pitfalls of digital currency
- The HKMA first announced a plan to study the potential introduction of a digital form of the Hong Kong dollar in June last year
- The authority has not yet committed to introducing e-HKD, saying it will keep an open mind on issues raised by the public
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Hong Kong is taking another step to establish the merits of a digital currency for public use, as the monetary authority turns to the market for input on the design and policy issues surrounding the so-called e-HKD.
The Hong Kong Monetary Authority (HKMA) is now asking industry leaders and consumers for additional feedback on the potential benefits and pitfalls of creating a digital form of the local dollar, in a follow-up to a technical white paper published in October. The issues include privacy concerns surrounding efforts to ferret out illegal activities.
“The policy and design considerations set out in the paper have reflected [the] latest international developments as well as the unique features of the financial market of Hong Kong,” chief executive Eddie Yue Wai-man said in a statement on Tuesday. “The comments received would help us formulate the strategy for best positioning our financial market” in the area, he added.
The public consultation will end on May 27. The city’s de facto central bank stressed it has not yet made a decision about e-HKD and would remain “open-minded” in considering the issues raised by the public.
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The HKMA has been examining central bank digital currencies since 2017, announcing a project in June last year to explore e-HKD as part of its Fintech 2025 plan. The decision followed similar moves by central bankers to advance their own digital currencies amid growing e-commerce and technological breakthroughs.
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