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Hong Kong To Start Testing Digital Currency In Coming Months

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Hong Kong To Start Testing Digital Currency In Coming Months

China’s special administrative region of Hong Kong is going to trial а digital version of its dollar as early as this year, in preparation for eventual roll-out. The territory is trying to catch up with those that are already launching central bank digital currencies, including the People’s Republic with its digital yuan project.

Trials of Digital Hong Kong Dollar Planned for Q4

Hong Kong intends to begin testing a currency called the e-HKD, a digital incarnation of the Hong Kong dollar, in the remaining months of the year. The trials will be facilitated by the adoption of legislative amendments and the building of digital infrastructure necessary to support the project, the Hong Kong Monetary Authority (HKMA) announced, quoted by the South China Morning Post.

The pilot phase comes after consultations conducted to gather feedback on potential demand, privacy aspects, and other issues that may arise around the issuance of a central bank digital currency (CBDC). Howard Lee, deputy chief executive of the HKMA, which performs the role of a central bank, elaborated:

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Although there might not be an imminent use case for e-HKD, taking into account the findings of our study and the feedback from market consultation and international development, the HKMA will start paving the way for e-HKD implementation and will proceed toward a launch of e-HKD in the future.

The high-ranking official also noted that many jurisdictions are already exploring the launch of CBDCs. Participants in the consultations held by the banking authority expressed their concerns that Hong Kong is lagging behind and needs to catch up with the international trend.

The trials will involve selected banks, payment providers, and tech firms. These entities will examine the usage of the digital currency among their employees and a small number of clients, Lee detailed. “The purpose of introducing the e-HKD is to provide more choice for the customer,” the deputy CEO added. He also emphasized that the move will not affect Hong Kong’s three note-issuing banks.

HKMA to Set Timeline for e-HKD Launch After Tests

Following the pilot phase, the Hong Kong Monetary Authority will set the timeline for launching the e-HKD, said Colin Pou, executive director for financial infrastructure at the HKMA. The regulator first announced the CBDC plan in June 2021, as part of the Fintech 2025 strategy. A white paper was issued in October and the consultations ended in May.

Dozens of central banks around the world have been studying digital currencies and taking steps to create their own. The People’s Bank of China (PBOC) has been running pilot programs for its digital yuan (e-CNY) in a number of cities and recently announced the expansion of the pilot area in four of them to the province level.

Hong Kong has also conducted small-scale tests with the e-CNY this year, Howard Lee revealed earlier this month. Last summer, the region’s financial authorities said they will link the digital yuan to its domestic payments system. Besides its cooperation with the PBOC, the HKMA has been also working with the central banks of Thailand and the United Arab Emirates on cross-border CBDC payments.

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CBDC, Central Bank, China, Crypto, Cryptocurrencies, Cryptocurrency, Digital Currency, Digital Yuan, e-CNY, e-HKD, HKMA, Hong Kong, monetary authority, PBOC, Testing, Trial, trials

Do you expect Hong Kong to catch up with mainland China in its digital currency project? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons, weerasak saeku

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

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Bank Of Russia Adds Digital Assets To Banking Chart Of Accounts

Central Bank of Russia has introduced digital assets, including the digital version of the Russian ruble, to the recently published draft of the new banking chart of accounts. In the future, financial institutions will be able to provide data about operations with these assets.

Russian Banks to Record Digital Currencies as Assets in Their Accounting Books

The Central Bank of the Russian Federation (CBR) has released the draft of the updated banking chart of accounts for next year. Starting from 2023, Russian lenders will be required to account for new types of transactions, including digital ruble flows and operations with digital financial assets (DFAs).

The monetary authority has been expanding the testing of its new central bank digital currency (CBDC) this year and hopes to pilot real-value settlements in early 2023. Authorities in Moscow are also working to more comprehensively regulate decentralized digital currencies.

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The current DFA law refers mostly to coins and tokens with an issuer but a new bill “On Digital Currency” aims to more fully cover cryptocurrencies like bitcoin. Amid sanctions imposed over an escalating war in Ukraine, Russia hopes to use both the digital ruble and crypto assets for international settlements.

Only one account has been reserved for the digital ruble while banks will have several accounts to reflect their DFAs in the sections “Acquired Digital Financial Assets” and “Issued Digital Assets,” the crypto page of the Russian business news portal RBC detailed.

Regulators explain the need for just one digital ruble account by pointing out that commercial banks will process only transfers of CBDC funds. The digital ruble will be issued by the Bank of Russia and stored in wallets at the CBR while credit institutions will act as intermediaries providing services to individuals and organizations such as executing transfers.

Russia’s central bank is actively pursuing its digital currency project with over a dozen banks now taking part in the trials of the CBDC platform. The regulator has been promoting its implementation in foreign trade while other institutions, most notably the finance ministry, want to also facilitate the employment of cryptocurrencies as a tool to circumvent Western financial restrictions.

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Account, accounts, Bank, Bank of Russia, banks, CBDC, CBR, Central Bank, chart of accounts, Crypto, crypto assets, Cryptocurrencies, Cryptocurrency, Digital Assets, Digital Currency, digital ruble, Payments, Russia, russian, Settlements

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Do you expect Russia to step up efforts to regulate digital currency payments in the coming months? Share your thoughts on the subject in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Norway Releases Source Code For Digital Krone Sandbox, Utilizes Ethereum Technology

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Norway Releases Source Code For Digital Krone Sandbox, Utilizes Ethereum Technology

A crypto company working with the central bank of Norway has published the source code for the sandbox created to trial the digital version of the Nordic nation’s fiat currency. The prototype digital krone is being built on the Ethereum network and the regulator wants to test various technologies and evaluate the potential impact on financial stability.

Norges Bank, Nahmii Fintech Provide Access to Source Code for CBDC Sandbox Developed for Norway

Norway’s monetary authority, Norges Bank, and the Norwegian company Nahmii AS have made public the source code for the sandbox for the Scandinavian country’s central bank digital currency (CBDC). The two are working together on the prototype of the state-issued coin.

The code is now available on Github, offered under an open-source Apache 2.0 license, Nahmii recently announced in a blog post on its website. The fintech’s main task is to create a sandbox environment with open-sourced services for the digital krone.

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“This allows for the testing of basic token management use cases, including minting, burning and transferring ERC-20 tokens,” explained the firm, which is a developer of a Layer-2 scaling solution for the Ethereum blockchain.

The sandbox features a frontend, which has been designed to offer an interface for interacting with the test network, and network monitoring tools. It will facilitate the deployment of smart contracts and provide access controls, Nahmii detailed.

The company intends to add complex use cases in the future, including batch payments, security tokens and bridges, while further developing the custom frontend of the sandbox. It plans to deliver the second part of the project to Norges Bank by mid-September.

The central bank of Norway is among dozens of monetary policy regulators currently working to develop and issue their own digital currencies. The trials are meant to establish whether its CBDC will be safe and efficient for the public without negatively affecting the stability of the Norwegian krone and the nation’s financial system.

When it announced it is conducting experimental testing to determine if a digital currency should be issued, the authority acknowledged the role of cash as an alternative to bank account money. At the same time, the bank pointed out that the use of cash is declining and warned this could undermine its functions.

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CBDC, Central Bank, COIN, Digital Currency, digital krone, Ethereum, monetary authority, Nahmii, Norges Bank, Norway, norwegian, prototype, regulator, sandbox, Smart Contracts, source code, Testing, Tokens, trials

Do you expect Norway to eventually issue a central bank digital currency? Tell us in the comments section below.

Lubomir Tassev

Lubomir Tassev is a journalist from tech-savvy Eastern Europe who likes Hitchens’s quote: “Being a writer is what I am, rather than what I do.” Besides crypto, blockchain and fintech, international politics and economics are two other sources of inspiration.

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Image Credits: Shutterstock, Pixabay, Wiki Commons

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Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.

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Norwegian central bank trusts Ethereum, credit goes to…

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Norwegian central bank trusts Ethereum, credit goes to…

In a major announcement, the central bank of Norway, Norges Bank, has said that the source code for its central bank digital currency (CBDC) sandbox is now publicly available.

The central bank has trusted Ethereum to build its national digital currency and decided to work with Nahmii, a layer-2 Ethereum scaling protocol for the project. The bank is testing many available technologies for its CBDC project.

The sandbox project leverages open-sourced services such as Grafana, BlockScout, and Hyperledger Besu that allow minting, burning, and transferring ERC-20 tokens. It also aims to create a filterable summary of transactions.

For now, the source code is only available to users with the appropriate credentials. However, it is expected that once the second part of the project is completed, the source code will be made publicly available.

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The project is expected to include all the major banks in Norwegia which will also benefit from Nahmii’s technical expertise.

Norway’s continued exploration with CBDC

It was in November last year that the Norwegian central bank published a working paper about the possibility of CBDCs, with blockchains like Ethereum, Bitcoin, and Bitcoin SV in mind. 

In May this year, the Norwegian central bank began contemplating introducing CBDCs in the country. The bank had identified the Ethereum cryptocurrency system during that point of time itself. It would help build a core infrastructure for issuing, distributing, and burning CBDCs.

Furthermore, Norges Bank is anticipating that it would have chosen a suitable CBDC option after two years of extensive testing of different blockchain infrastructures. It considers interoperability to be one of the most important problems while considering various technical solutions.

IMF has welcomed

In June 2021, the International Monetary Fund (IMF) welcomed the Norges Bank’s continued exploration of CBDC. “Cash usage has been falling significantly and is now among the lowest among advanced economies in terms of cash-to-GDP,” it added.

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So far, only Nigeria and the Bahamas are the only countries to have completely launched CBDC projects.

Ser Suzuki Shillsalot has 8 years of experience working as a Senior Investigative journalist at The SpamBot Times. He completed a two-hour course in journalism from a popular YouTube video and was one of the few to give it a positive rating. Shillsalot’s writings mainly focus on shilling his favourite cryptos and trolling anyone who disagrees with him. P.S – There is a slight possibility the profile pic is AI-generated. You see, this account is primarily used by our freelancer writers and they wish to remain anonymous. Wait, are they Satoshi? :/

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