The Hong Kong Monetary Authority (HKMA) has announced that it plans to research the development of its own digital currency as part of a broader push to drive the development of the city’s fintech sector.
On 8 June HKMA publicly released its Fintech 2025 strategy (金融科技2025), which has the goal of driving comprehensive use of fintech in the Hong Kong financial sector by 2025.
HKMA chief executive Eddie Yue said that the authority is currently working with the Bank for International Settlements Innovation Hub on research into central bank digital currency (CBDC) at the retail level, and is about to commence research into the development of a digital Hong Kong dollar, or “e-HKD.”
Yue said that HKMD is also cooperating on an ongoing basis with the Chinese central bank on testing of the Digital Renminbi in Hong Kong, and the provision of more convenient cross-border payments services for both Hong Kong and mainland residents.
In addition to further research into CBDC’s, HKMA will also focus on several other areas as part of its Fintech 2025 Strategy including:
- Driving comprehensive digitisation of banks, building upon the foundation of the Smart Bank strategy unveiled in 2017.
- Utilizing the potential of data infrastructure.
- Expanding fintech human resources.
- Effective use of resources and policy to support development.
HKMA said that it planned to establish a “Fintech Cross-sector Coordination Team,” to formulate policies to support the development of the Hong Kong fintech ecosystem.