The Hong Kong Monetary Authority (HKMA) has announced that the city-state’s Central Bank Digital Currency (CBDC) pilot program is entering its crucial second phase. Indeed, its digital Hong Kong dollar, referred to as the e-HKD, is set to enter a critical examination stage for its ongoing development.
The HKMA revealed that the next steps will be expanded currency use case research. Moreover, these studies will center around the ideas of programmability, tokenization, and ways to observe previously unfounded use cases. The announcement arrives amid an ever-growing digital currency landscape in global economics.
Also Read: HSBC, The Largest Bank in Hong Kong to Introduce Tokenization
Hong Kong Announces CDBC Pilot To Enter Second Phase
Over the last several years, the integration of digital asset research into global economies has increased. Specifically, a plethora of countries have sought to research Central Bank-issued digital assets. Subseuqnlety, many of those have introduced these assets to positive results.
Now, one city-state has announced the next step in its examination of the idea. Indeed, Hong Kong has announced that its CBDC pilot program is set to enter a crucial second phase. The HKMA revealed the launch of the next stage through a press release.
Also Read: Hong Kong Regulators to Accept Spot Crypto ETF Applications
The city’s monetary authority stated that the next phase will carry on the continued work done through its first efforts. That first period of initial research ended in September of last year and explored digital currency functionality, programmability, and tokenization. The second step in the process will expand on many of these ideas.
The HKMA has said that the second phase of research will “delve deeper” into use cases, both new and previously discovered ones. Additionally, a new sandbox will be implemented, which will “facilitate the study of interoperability and interbank settlement between e-HKD and other forms of tokenized money.”
The new phase of CBDC for Hong Kong arrives amid an ever-changing global landscape. As previously mentioned, many countries have sought to develop their digital currencies. Furthermore, the BRICS economic alliance has crafted its own blockchain-based payment system. The continued technological advancements could have massive global economic implications in the coming years.