Exploring Hong Kong’s e-HKD CBDC Features and Its Parallels with India’s eRupee
The Growing Landscape of CBDCs in Hong Kong and India
Hong Kong is accelerating efforts to revamp its fiat currency, the Hong Kong Dollar (HKD), by launching the e-HKD central bank digital currency (CBDC) into its second phase of trials. Following the Reserve Bank of India’s innovative approach with the eRupee, Hong Kong is now focusing on features that enhance the end-user experience.
Features of e-HKD and Its Comparison with eRupee
With the progress of the e-HKD initiative, the Hong Kong Monetary Authority (HKMA) has transitioned the project to e-HKD+. This updated name emphasizes the region's commitment to exploring various use cases in the digital currency sphere. A key aspect of this CBDC is its programmability and offline payment features, aimed at making transactions feasible even in regions with limited network access.
- Programmability: Allows corporate firms to use the CBDC for customized applications.
- Offline Payments: Enhances functionality in areas with unreliable internet connectivity.
Recent statements from HKMA Chief Executive Eddie Yue indicate a dedication to a use-case-driven approach. Additionally, Hong Kong is exploring tokenised deposits, essentially traditional bank deposits transformed into blockchain-based tokens.
Future Outlook and Global Trends
The e-HKD+ project aims to support the potential issuance of a practical e-HKD for individuals and corporations alike. As the trial enters a pivotal phase with 11 participating firms and 21 financial institutions, other countries, including China and Japan, are also advancing CBDCs, emphasizing the need for regulatory frameworks and educational initiatives.
This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.