The first look at the technical realization of the central bank digital currency in the future
The Hong Kong Monetary Authority, in conjunction with the BISIH Center in Hong Kong, has released a 50-page technical white paper on its future retail digital banking currency. The goal of the document is to explore potential architectures and design options that can be applied to and distributed CBDCs.
Enhanced research work on CBDCs began in June of 2021 as part of the “Fintech 2025” strategy, which aims to modernize Hong Kong’s current economic system. In addition to expanding cooperation with central banks on the global implementation of central bank digital currencies, the Hong Kong Capital Markets Authority is studying and researching ways to issue digital currency to retail central banks in Hong Kong.
The initial presentation of the e-HKD is expected to be delivered later next year. The released white paper covers the research methodology and technical realization of the financial solution.
The white paper that has been released is one of the first technical documents published by central banks that actually reveal the future functioning of the central bank of the central bank. According to the document, e-HKD will include Privacy Preserve, which will allow transactions to be tracked in a privacy-friendly manner.
Within the framework of this research, the CMA is also looking at a number of issues related to CBD implementation that are summarized in the white paper. The CEO of HKMA stated that the white paper is only a first step in the technical exploration of e-HKD. HKMA looks at the experience gained by other countries and central banks developing their own CBDC solutions as well as its own research. The company is ready to receive feedback and suggestions from the industry.