Hong Kong authorities to study retail CBDC launch

The Hong Kong Monetary Authority (HKMA) will examine the possibility of using a central bank digital currency (CBDC) in retail transactions.

The HKMA today announced “Fintech 2025”, a new strategy that aims to encourage the financial sector to adopt technology comprehensively by 2025, as well as to promote fair and efficient financial services in HK.
Find out more: https://t.co/vSnXtREEMg pic.twitter.com/StrdF1mFMd

— HKMA 香港金融管理局 (@hkmagovhk) June 8, 2021

Research related to the new instrument has become part of Hong Kong’s fintech development strategy through 2025. Previously the regulator had only considered wholesale CBDCs.

According to the press release, to study the digital Hong Kong dollar the agency is collaborating with BIS Innovation Hub. Together they will assess the advantages and risks associated with the instrument. 

The HKMA said that, together with the People’s Bank of China (PBoC), they will continue testing the digital yuan in cross-border payments.

In February, the PBoC and the Central Bank of the UAE joined the second phase of the project “Bridge for central bank digital currencies”, previously known as Inthanon-LionRock. It also includes HKMA and the Bank of Thailand.

Earlier in May, Hong Kong authorities were reported to be negotiating with China to expand testing of the digital yuan in cross-border transactions.

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