The proposed e-HKD, the central bank digital currency (CBDC) of Hong Kong, has recently passed a number of tests on its programmability by the Hong Kong Monetary Authority (HKMA). The e-HKD has "interesting" application cases even though it is still in its early stages, HKMA CEO Eddie Yue emphasized. He also disclosed the Mbridge project's goal of having a minimum viable product by the middle of 2024.
Research on the e-HKD is advanced by the Hong Kong Monetary Authority
The e-HKD, a proposed central bank digital currency (CBDC), has lately been the subject of several experiments, according to the Hong Kong Monetary Authority (HKMA). These testing, according to HKMA CEO Eddie Yue, focused on the e-HKD's programmable feature, which enables the issuer to set restrictions on how the digital money may be used.
The Bank of China tested this capability in Hong Kong this month, according to the South China Morning Post (SCMP). In addition, the bank has partnered with ten businesses to enable clients to participate in a variety of retail payment promotions using the e-HKD.
Regarding the importance of these tests, Yue said:
In areas like programmable payments and in more recent ones like tokenized deposits and tokenized assets, there are several intriguing use cases for the e-HKD.
Yue emphasized that the HKMA needed to "find a use case that is better than the current retail payments" while pointing out that e-HKD was still only in the experimental phases. Because it won't be possible unless you are either safer, faster, or more convenient.
Initiative Mbridge
The People's Bank of China (PBOC), the central banks of Thailand and the United Arab Emirates, and the Hong Kong Monetary Authority (HKMA) are all partners in Project Mbridge, a CBDC network that is currently being tested. Yue emphasized that the four participants in this test were figuring out "important policy issues like governance and liquidity provisions" in preparation for releasing a minimum viable product by the middle of 2024.
Yue's predictions diverge from what Reuters stated in August, according to four knowledgeable sources, that Mbridge might have a minimum working product available by year's end. Several central banks are presently keeping an eye on Mbridge because they worry that it could be used to transfer money outside of the restrictions and penalties of Western nations.
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