HK Recruits Firms From HSBC to Visa to Test Digital Currency

Hong Kong began testing a digital version of its currency as it joins other regulators exploring its use.

(Bloomberg) — Hong Kong began testing a digital version of its currency as it joins other regulators exploring its use.

HSBC Holdings Plc, the local unit of Bank of China Ltd., e-payment provider Alipay and Visa Inc. are among 16 firms that signed up to a pilot program for the e-HKD, the Hong Kong Monetary Authority said in a statement Thursday. The trial will explore e-HKD’s potential use in six areas including offline payments.

Hong Kong, which is also pushing to burnish its image as a fintech hub, is the latest place to experiment with central bank digital currencies in response to rise of Bitcoin and other cryptocurrencies.

Read More: Why Central Banks Got Serious About Digital Money: QuickTake

The HKMA, the city’s de facto central bank, said it plans to share key findings during Hong Kong Fintech Week, which begins Oct. 30. Mainland China also has a pilot program for a digital Yuan. Regional rival Singapore has said it won’t do a large-scale rollout of a retail digital currency for now, citing risks from its adoption.

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