Hong Kong CBDC: Banks to Decide How e-HKD Will Look Like

Lavina Daryanani
Source: CoinGeek

Countries across the world have been stepping up efforts to develop their own digital currency versions. Hong Kong is one such country. In most regions, central banks are taking care of the whole development with respect to testing and research process. This is being done in conjunction with experts and research units. In Hong Kong, nevertheless, banks have been asked to call the shot with respect to the nature of the ledger. Now, that could either be fully centralized or decentralized.

A recent report from CoinDesk revealed that “at least one major bank” is inclined toward developing a digital Hong Kong Dollar on a permissioned blockchain. According to an unnamed Hong Kong-based bank official, the design of Hong Kong’s CBDC is not being dictated by the central government. Well, this is in stark contrast to the People Bank of China’s e-CNY.

Israel is another country that has been in the news of late for making CBDC-related advancements. Just a day back, Watcher Guru reported that the Bank of Israel has a plan outlined to roll out digital shekel [SHAKED]. In fact, the bank is currently working on an “action plan” to issue the CBDC. 

Also Read: Bank of Israel Plans to Roll Out Digital Shekel CBDC

Banks are allowed to review, research, propose: Official

The official reiterated that the e-HKD will likely be developed “without the public making a decision as to what they really want.” The source said that Hong Kong’s regulator has left implementation up to Hong Kong banks and added,

“They are allowed to go and review and research and then propose back.”

Leaving aside CBDC, Hong Kong remains committed to becoming a digital asset hub. It has been taking steps in the said direction. In a move to assist crypto firms with banking and ease financing, regulators are set to hold a meeting between crypto firms and bankers. The same is scheduled for the end of this month.

Also Read: Hong Kong Regulators to Assist Crypto Firms with Banking