The city’s de facto central bank Wednesday sought public consultations on the e-HKD, as the Hong Kong Monetary Authority (HKMA) chief expressed concerns on a retail digital Hong Kong dollar intensifying competition in the retail payments space.
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- Public acceptance of e-HKD might be hard if it does not address specific payment pain points, Eddie Yue, the chief of HKMA, said.
- Yue also raised potential financing challenges posed by technical restrictions and limitations in cash to e-HKD on-ramps.
- The HKMA is also considering privacy aspects related to digital currencies and whether programmable money can spark hacks and public distrust, Yue added.
- Hong Kong has not decided on the pursuit of a retail central bank digital currency (CBDC), Yue said, but has sought public comments through May 27.
- Last October, Hong Kong released a white paper to explore the feasibility of e-HKD.
- Hong Kong, however, is partaking in an inter-government cross-border CBDC project with three other central banks and the Bank of International Settlements, known as the Multiple CBDC Bridge (mBridge).
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