Hong Kong Fintech Weekly Unveils Latest Digital Hong Kong Dollar (e-HKD) Trends

On November 3, Hong Kong Finance Minister Chen Maobo said during "Hong Kong Financial Technology Week 2021" that the Hong Kong Financial Authority is studying the prospect of launching Hong Kong's digital currency at the sale and the following conclusions are possible. hli. Zhou Wenzheng, director of financial technology at the Hong Kong Monetary Authority, also said he was studying bank spending in the middle of the wholesale market and the potential of markets to sell, but this is not yet available. This means that the Hong Kong Monetary Authority will announce the Hong Kong Digital Dollar in the near future.

He added, “Firstly, regarding the timing of the release, the retail level includes low prices and frequent changes, so the potential demand for the system is high. Therefore, the Hong Kong digital dollar will not be issued in the short term. Kong also uses a two-tier approach to divide corporate responsibilities and financial policies.

At the same time, the government will impose higher restrictions on digital wallets to prevent migration and restrict one digital wallet per person. Also on the day of the event, the Hong Kong Innovation Center of the Bank for International Settlements, in collaboration with the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates and the Institute People's Bank of China Digital Currency Research. , published the mBridge Use Case Manual. Explain the use of information

As a mobile payment network, the Hong Kong Monetary Authority and the Bank of Thailand jointly developed the Inthanon-LionRock project in 2019 to study the wholesale-level investment of Hong Kong funds in cross-border payments. The project entered phase 2 in 2020 and was subsequently renamed Multi-CBDC Bridge (mBridge) in February 2021. Participants added the UAE Central Bank and the People's Bank of China Digital Currency Institute. to the Monetary Authority and the Bank of Hong Kong. Thailand.

In June 2021, the Hong Kong Monetary Authority announced the e-HKD project based on its experience and expertise in market-level digital currency. Technological tests, legal and regulatory issues. With the extensive research, HKMA released "e-HKD: Approval" in October 2021. According to the framework outlined in the White Paper, Digital Hong Kong The dollar has two levels: the retail level and the stock market.

In these models, value propositions supported by the Retail Digital Dollar or Digital Outcomes (rCBDC) are distributed to the public and presented in-store. Electronic benefits supported by digital currency are issued and supported by financial institutions (such as commercial banks and payment service providers).

At the wholesale level, the bank announced the Digital Hong Kong Dollar at the Wholesale Level (wCBDC) for the financial sector, which is the responsibility of the bank in the enterprise. The middle class can use Hong Kong's digital currency as a means of payment for wholesale transactions. The middle class can also use rCBDC at the retail level, but wCBDC should be rejected as a backup asset.