According to Foresight News, the Hong Kong Monetary Authority's (HKMA) Digital Hong Kong Dollar pilot program has concluded its second phase of applications last Friday. The selected applicants are expected to be interviewed this month or the next, with further details to be communicated to the shortlisted institutions in due course.
The HKMA will evaluate the applications submitted by participating institutions based on several criteria. The proposals should demonstrate innovative elements and significant differences from existing market solutions, such as new business models, new markets, or improved versions of existing products. The proposals should enhance customer experience or address current pain points, preferably with some degree of market validation, such as through collaboration with large enterprises.
The proposals should also allow for market testing with selected customer groups, conduct relevant risk analysis, and formulate appropriate mitigation measures. Sufficient financial and human resources should be invested. Lastly, the proposals should fully exploit the potential uses of the Digital Hong Kong Dollar. The HKMA's initiative is part of a broader global trend towards exploring the potential of digital currencies and their integration into existing financial systems.