The Hong Kong Financial Authority (HKMA) is getting into the second section of its e-HKD (e-Hong Kong greenback) pilot program, testing use instances for a potential central financial institution digital forex (CBDC).
In a brand new report issued by the HKMA, the central financial institution says the primary section of the hassle had 16 completely different corporations exploring a number of areas of CBDC use.
“Part one took deep dives into potential home and retail use instances in six classes: full-fledged funds, programmable funds, offline funds, tokenized deposits, settlement of web3 transactions, and settlement of tokenized belongings. Sixteen corporations from monetary, cost and know-how sectors have been chosen to take part.”
![](https://dailyhodl.com/wp-content/uploads/2023/10/Screen-Shot-2023-10-31-at-7.21.40-PM.jpg)
One section one participant, funds big Mastercard, explored “wrapping” e-HKD to be used throughout different blockchains by “simulating the acquisition of bodily objects and the contingent change of NFTs (non-fungible tokens) – every representing a digital certificates of authenticity for the bodily merchandise – on a tokenized asset community.”
The report notes a number of worries associated to CBDCs, together with privateness considerations expressed by these surveyed main as much as the section one launch in November 2022.
“Respondents have been usually receptive to an e-HKD, though they highlighted the necessity to research the industrial viability of use instances and different points comparable to privateness protections and authorized issues.”
The report additionally flags safety considerations concerning programmable retail CBDCs (rCBDCs), which customers would use.
Says the report,
“An rCBDC issued as programmable cash could also be extra inclined to cybersecurity dangers, as it might current extra mediums for exterior threats to inject malicious code. A fragile stability will due to this fact must be struck between facilitating the trade’s improvement of revolutionary services, and guaranteeing the general security of financial and monetary methods.”
The second section of the pilot will “construct on the success of section one, and think about exploring new use instances for an e-HKD” and “delve deeper into choose pilots from section one.”
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