The Hong Kong Financial Authority (HKMA) printed a paper outlining the state of analysis on its proposed retail central financial institution digital forex (rCBDC) and plans for its additional growth. That is the third paper the HKMA has printed on the e-HKD, because the proposed CBDC known as.
The proposed rCBDC would have a two-tier construction consisting of a wholesale interbank system and the retail consumer pockets system. No wholesale Hong Kong CBDC has been launched but, however analysis on it started in 2017, 4 years earlier than rCBDC planning began. The rCBDC can be disintermediated. The paper notes:
“Whereas it seems that e-HKD may not have an imminent position to play within the present retail cost market, we consider potential use circumstances for e-HKD can emerge rapidly out of the fast evolution, and even revolution, within the digital financial system.”
One of many use circumstances into consideration is “utilizing CBDC because the on- and off-ramp instrument for [decentralized finance, or] DeFi .”
Though no begin date is focused within the paper, the native press reported that testing of the rCBDC could start within the fourth quarter of this yr.
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The majority of the paper was dedicated to responses to the earlier papers, one in all which was a request for feedback on the technical facets of the rCBDC, whereas the opposite handled coverage and design. Between them, the papers acquired 75 responses from stakeholders.
The vast majority of commenters on the technical side most popular that privateness and cybersecurity take priority over effectivity. There was wider vary of opinions on efficiency and scalability.
Offline and cross-border funds and interoperability with present cost programs had been chief considerations expressed in regard to design. Interoperability with mainland China’s e-CNY CBDC, which is now within the pilot stage, was particularly famous.
