HSBC has embarked on testing Ethereum as part of the Hong Kong Monetary Authority's initiative to introduce the digital Hong Kong Dollar (e-HKD). The bank is exploring how blockchain technologies can underpin secure financial transactions.
HSBC Experiments with Ethereum
HSBC has conducted trials across several blockchain systems, including Ethereum, Arbitrum, Linea, and Polygon, while also testing its own private network built on Hyperledger Besu. The bank examined how digital money could securely move across both public and private blockchain systems while ensuring privacy and scalability.
Public Opinion Survey on e-HKD
As part of its research, HSBC surveyed over 700 people in Hong Kong regarding their views on e-HKD. The results revealed that privacy is a critical issue: 90% of respondents indicated the importance of privacy in e-HKD transactions. 65% of professional investors were already familiar with what e-HKD is, compared to 42% of the general public. Approximately one-third of respondents expressed willingness to use e-HKD for digital asset trading, linking it to safety due to its official backing.
Future of Digital Currencies in Hong Kong
HSBC's CEO for Hong Kong, Luanne Lim, affirmed the importance of financial innovation in the region, stating: "As Hong Kong's largest note-issuing bank, we will continue our efforts to drive financial innovation in Hong Kong and the world." John O'Neill, Group Head of Digital Assets and Currencies, added that their experimental work and public perception survey aim to support the HKMA's assessment of different options for real-world use of digital currencies.
HSBC's program for testing Ethereum and the digital Hong Kong Dollar highlights the bank's active role in fintech within Hong Kong. Ongoing research and development related to e-HKD could reshape the financial landscape of the region.
