Hong Kong to lay the foundations for e-HKD

finextra.com:

In total, 75 responses were received during the consultation. Overall, respondents were found to be supportive of the initiative and believe that e-HKD has the potential to make payments more effective in a future digital economy.

At the same time, respondents also pointed out the need to further examine issues such as privacy protection, legal considerations, and use cases. Taking into account the findings, the HKMA has outlined a three-rail approach, which will pave the way for possible implementation of e-HKD in the future.Rnunning in parallel, the first two rails will lay the technology and legal foundations, and take a deep dive into use cases as well as application, implementation, and design issues.

The HKMA says it will also conduct a series of pilots in close collaboration with various stakeholders to gain actual experience.Rail three will set the timeline for lunching e-HKD, consolidating the outcomes of the earlier preparatory wok.Eddie Yue, chief executive of the HKMA, comments: “The two rounds of market consultation have registered widespread support for the e-HKD initiative. We welcome the positive feedback received and agreed with the respondents the need to take a deep dive into issues such as privacy protection and use cases.