Central Bank Digital CurrenciesChinaCrypto BankingCryptocurrencyHong KongNewsWeb3

Hong Kong Central Bank Digital Currency Enters Phases 2

Hong Kong is making considerable development in CBDC as its e-HKD project has recently implemented a 3-rail approach. The respective program is set to move toward its 2nd phase after the efficient accomplishment of the earliest phase that dealt with full-fledged payments. In addition to this, the first phase took into account tokenized deposits, offline payments, and programmable payments.

CBDC Project of Hong Kong Moves into the 2nd Phase Following Positive 1st Phase

Moreover, the settlement of tokenized assets and Web3 transfers was also included in the 1st phase. The e-HKD project’s 3-layered approach includes the development of a foundation layer, iterative enhancements, and industry pilots. The final step of this approach comprises a complete launch. The Hong Kong Monetary Authority started the Central Bank Digital Currency (CBDC) pilot back in November last year.

The initiation of the respective pilot was carried out to explore a CBDC’s feasibility. This is included in the “Fintech 2025” strategy of the city-state. At present, the initial phase of the respective pilot has been completed. The HKMA has asserted that the launch of an e-HKD could provide an advantage to the clients and native enterprises.

📰 Also read:  US Government Should Adopt On-Chain Spending - Coinbase CEO

The areas to be focused on deal with atomic settlement, tokenization, and programmability. The report regarding the project points out that the upcoming phase will develop on the triumph of the first phase. As per the report, the next phase will attempt to delve into the latest use cases concerning an e-HKD. While moving on, the project will deal with the use cases that the initial phase identified in terms of great potential.

The 3-Layered Approach of the Program Lets It to Offer Scalability and Interoperability

The program is paving the way for the utilization of distributed ledger technology. The e-HKD project’s 3-layered approach signifies the systematic and gradual progress of the project. This would also be effective in minimizing the likely vulnerabilities. The distributed ledger technology’s use will enable the project to leverage scalability and interoperability-related capabilities.

In the 2nd phase, the stakeholders will provide input for the project in both private and public sectors. With this, the project can govern the viability of these sides. In the meantime, the HKMA is making continuous efforts concerning a few aspects of the 1st layer. They include the technical and legal basis for the launch and implementation of a central bank digital currency (CBDC).

The HKMA mutually started the multiple CBDC Bridge programs in collaboration with the Bank for International Settlements-based Innovation Hub. The respective partnership took place back in the year 2021.The other parties engaged in this partnership include central banks in the United Arab Emirates, Thailand, and China.

📰 Also read:  How to Trade Futures on BingX Exchange - A Comprehensive Guide

The CBDC Project Focuses on Enabling Transparent, Cheaper, and Rapid Payments across the Borders

The respective project has the chief objective of exploring solutions dealing with transparent, cheaper, and rapid CBDC payments across borders. Eddie Yue, the chief executive officer of the HKMA, pointed out in September that mBridge intended to commercialize and broaden. For this purpose, he added, onboarding of the latest banking participants plays a significant role.

According to Yue, the respective people will come from the United Arab Emirates, Thailand, and Hong Kong. The executive moved on to say that the agency is thrilled to receive some fellow central banks in the open forum. He also stated that the organization will shortly introduce a minimum viable product. While doing so, Yue added, the HKMA’s target would be to enable mBridge’s gradual commercialization.


At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.

📰 Also read:  What is the Altcoin Season Index? A Beginner’s Guide

Mubashar Nawaz (United Arab Emirates)

Mubashar Nawaz is an experienced crypto writer working for Tokenhell. Having passion for writing, he covers news articles from blockchain to cryptocurrency.

Leave a Reply

Your email address will not be published. Required fields are marked *

Back to top button
Close
Skip to content