16 companies selected for the "Cyberport Macro Fund" pilot program, Ripple and Fubon Bank of Hong Kong experiment with tokenized asset settlement.

Table of Contents

Launch of "Digital Hong Kong Dollar" Pilot Scheme: HKMA Collaborates with Industry to Explore Innovative Use Cases

The Hong Kong Monetary Authority (HKMA) announced today, May 18, the launch of the "Digital Hong Kong Dollar" pilot scheme, aimed at preparing for the potential introduction of retail central bank digital currency in the future. The scheme has selected a total of 16 companies from the financial, payment, and technology sectors to conduct the first round of trials within this year, delving into potential use cases of the "Digital Hong Kong Dollar" in various areas. These areas include comprehensive payments, programmable payments, offline payments, tokenized deposits, third-generation internet (Web3) transaction settlement, and tokenized asset settlement.

HKMA Collaborates Closely with Selected Companies to Explore Applications of "Digital Hong Kong Dollar"

The pilot scheme is an important component of the HKMA's three-track approach, aiming to explore the application scenarios of the "Digital Hong Kong Dollar" and related operational and design matters through a series of experiments in collaboration with various stakeholders. Senior representatives from the 16 selected companies attended the launch ceremony of the pilot scheme, showcasing the key points of their proposed use cases. In the coming months, the HKMA will work closely with the selected companies to conduct trials and monitor their progress. The HKMA plans to share the experiences gained from the experiments with the public during Hong Kong Fintech Week 2023 and further collaborate with the industry for more rounds of trials.

HKMA Establishes CBDC Expert Group to Promote Research Collaboration on Central Bank Digital Currency

In order to facilitate collaboration among the government, industry, and academia in research on central bank digital currency (CBDC), the HKMA plans to establish a CBDC expert group composed of top scholars from local universities. Members of the expert group will provide valuable insights to support Hong Kong in continuously exploring key policy and technical issues related to CBDC, such as privacy protection, cybersecurity, and interoperability. The HKMA hopes that by promoting collaboration among the government, industry, and academia, it can advance CBDC research and development in line with the times and translate the findings into tangible business opportunities.

Eddie Yue, Chief Executive of the HKMA, stated: "While the HKMA has not yet decided whether to launch the Digital Hong Kong Dollar or when to do so, we are pleased to initiate the Digital Hong Kong Dollar pilot scheme. This is a great opportunity for the HKMA to collaborate with the industry to explore innovative use cases and prepare for the potential introduction of the Digital Hong Kong Dollar in the future. We appreciate the active participation of the industry in the trials and look forward to the results. We also welcome experts from the academic community to participate in CBDC research. Through collaboration among the government, industry, and academia, we hope to ensure that our research and development work stays current and translates into tangible business opportunities."

For more details about the Digital Hong Kong Dollar pilot scheme, the HKMA will work closely with the selected companies and share the trial results and experiences with the public in the future. The HKMA will continue to drive CBDC research and exploration to maintain Hong Kong's leading position in the digital currency field.