Hong Kong to broaden e-CNY pilot in move to boost cross-border payment efficiency
Quick Take: Paul Chan, Hong Kong’s financial secretary, said in his budget speech that the government will expand the e-CNY pilot scope. The Hong Kong government will also commence the second phase of its CBDC, the e-HKD.
Paul Chan, the financial secretary of Hong Kong, said in his budget speech on Wednesday that the government plans to expand the pilot testing of the digital yuan so more residents in Hong Kong may top up their e-CNY wallets through the local existing “Faster Payment System” (FPS).
FPS is a real-time payment settlement system that allows users to make cross-bank e-wallet payments by entering the mobile phone number or the email address of the recipient.
The Hong Kong Monetary Authority, Hong Kong’s de facto central bank, completed the first-phase pilot of its CBDC, the e-HKD, in October 2023, and has “studied domestic retail use cases in various areas such as programmable payments, offline payments and tokenized deposits,” according to Chan. The HKMA plans to “soon commence” the second phase of its e-HKD pilot.
A multi-CBDC platform
The HKMA has also been engaged in the mBridge CBDC project, which is set to launch the first phase of its service this year, according to the budget speech. The mBridge project is initiated by the Bank for International Settlements, the HKMA and the central banks of China, Thailand and the UAE to experiment with a common multi-CBDC platform for wholesale cross-border payments.
Meanwhile, Hong Kong issued the second batch of tokenized green bonds earlier this month after it issued the first batch in February 2023, Chan added. That was “the world's first-ever multi-currency tokenized bond issuance,” and has attracted “overwhelming subscription” by global institutional investors, including asset managers, insurance companies, private banks and non-financial corporates, he said.
Chan also noted that Hong Kong plans to soon roll out a sandbox for those interested in issuing stablecoins. In December, the Financial Services and the Treasury Bureau and the HKMA jointly launched a consultation — until Feb. 29 — on regulating stablecoin issuers. They proposed that all fiat-referenced stablecoin issuers should obtain a license from the HKMA.
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
After the "Black Week" for tech stocks, Wall Street calls for "bottom fishing"
Morgan Stanley has made it clear that "the next two to three weeks are the time to increase positions." Ed Yardeni characterizes the current downturn as a "correction" rather than the bursting of a bubble. Major Wall Street institutions have an average year-end target for the S&P 500 of 7,973 points. However, most strategists believe that the direction of AI policy remains the largest variable.
CoreWeave writes to Texas governor-elect seeking "data center consultation"
In this open letter, Michael Intrator stated that CoreWeave "strongly supports" Hinojosa's principled position that the growth of data centers must benefit the people of Texas. "We welcome the opportunity to work with your transition team to responsibly advance approved projects and to establish clear and lasting standards for future developments," he said.
What Would Bitcoin Look Like Without the Trump Effect?
Crypto prices
More
