,Hong Kong

Hong Kong mulls launching own digital currency: financial secretary

This is part of HKMA's initiative to 'push all banks to go fintech'.

Hong Kong is looking to issue its own central bank digital currency (CBDC), Financial Secretary Paul Chan confirmed.

“The Hong Kong Monetary Authority (HKMA) is also studying the prospect of issuing our own central bank digital currencies, CBDCs, for retail use in Hong Kong, and I look forward to sharing the findings in the coming months,” Chan told attendees of the Hong Kong Fintech Week 2021, for which he delivered the welcoming remarks. 

The HKMA recently released a whitepaper that studies the technical and regulatory aspects involved in issuing an e-HKD.

It first announced its intention to study CDBDs as part of its “Fintech 2025” roadmap. First unveiled in June, the roadmap seeks to strengthen the city’s fintech sector and push “all banks to go fintech.”

“The HKMA has been working with the Bank for International Settlements Innovation Hub Hong Kong Centre to research retail CBDCs and will begin a study on e-HKD to understand its use cases, benefits, and related risks,” the financial regulator stated in a press release.

Hong Kong’s regulator is collaborating with the People’s Bank of China (PBOC) to test e-CNY in the city to enhance cross-boundary payment services.

“Equally significant is the continuing collaboration between our Hong Kong MA and the People's Bank of China, in the testing of the use of digital renminbi here in Hong Kong, the goal is creating a convenient means for bounder payments for Hong Kong and mainland residents,” Chan noted in his welcoming remarks.

The HKMA and PBOC recently signed a memorandum of understanding for the Greater Bay Area FinTech supervisory cooperation. The new cooperation will reportedly allow financial institutions, tech companies and innovators from Hong Kong to test cost boundary financial applications via a one-stop sandbox, Chan said.

Join Asian Banking & Finance community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!

Banks should have enough buffers and find climate transition risks manageable.
The products are now available at Eccellente by HAO Market in Singapore.
Institutional clients may accelerate time-to-market financial applications.
This was thanks to a rise in loans made to the service sector during the period.
Discussions between the two banks are at the preliminary stage.
But it reported weaker quarterly performance, largely due to its $309.8m Q3 expense.
Uncertainty over Omicron's impact may drive this slowdown.
Only 2 in 10 Singapore micro-multinationals think banks offer value for money.
The Internet boom has pushed 9 out of 10 digital merchants to accept digital payments.
It’s not as urgent as other markets with credit under-penetration, says TMRW Digital Group CCO.
The move is part of the BSP’s Digital Payments Transformation Roadmap.
Internet economy in SEA has propelled digital payments further.
The market is expected to top $83.2b in four years’ time.
The 3.26% interest rate average is its highest since November 2018.