3 FALL 2023 NO.76 / THOUGHT LEADERSHIP BRIEF This Thought Leadership Brief is adapted from the report Public Perception of e-HKD published by HKUST Business School in 2023. Our study clearly shows that positive perceptions by far exceed negative perceptions, with about half of the surveyed population (50.32%) indicating that they would likely or very likely use the e-HKD for daily transactions if it was introduced in Hong Kong. Nevertheless, the rates of neutral perceptions were strikingly high in answers to a broad range of questions. This impressively aligns with our findings that 42% respondents are “neutral” towards the likelihood of successful adoption of the e-HKD by the public. Among those respondents who expressed that they are not likely to use the e-HKD for daily transactions, the majority feels satisfied with existing payment options (60%), while more than half have concerns about personal data privacy (55%) and cybersecurity (51%). For those who are likely to use the e-HKD for daily transactions, convenience was a major consideration. Most respondents think the e-HKD should be issued by the HKMA, reflecting the trust in the regulatory body as one of the potential issuers of the digital currency. Figure 3. Do You Agree e-CNY Should Be Introduced In. Hong Kong So That Hong Kong Residents Can Use e-CNY to Settle Renminbi Payments in Hong Kong and Greater Bay Area? Figure 4. If e-CNY Is Introduced in Hong Kong, How Likely Will You Use It? Figure 5. Comparing e-HKD and e-CNY, Which Digital Currency Do You Think Will Add More Value to You? RECOMMENDATIONS When designing and implementing the e-HKD roadmap for Hong Kong, the relevant authorities should keep in mind that cybersecurity and personal data privacy are identified by our survey among the top design features of the e-HKD. It is not only important to select technologies that increase cybersecurity but also to educate people about the safety measures and proper protection of their data. Naturally, if more merchants accept the e-HKD as a payment option, people will have more incentives to adopt the e-HKD. It is crucial to get the merchants on board by fully understanding their business needs and potential considerations. Many of the respondents who expressed they are unlikely to use the e-HKD for daily transactions attributed their reluctance to their satisfaction with existing payment options. We believe it would be crucial to provide opportunities for them to experience novel application scenarios so that they can familiarize with using the e-HKD. For example, issuing limited-time commercial vouchers at local events as a trial could give potential users the first-hand experience to use the e-HKD. Strongly agree Agree Neutral Disagree Strongly disagree 42.54% 30.79% 5.66% 8.40% 12.62% Verv likely Likely Neutral Unlikely Very unlikely 37.63% 19.89% 18.68% 19.14% 4.65% Indifferent e-CNY e-HKD 51.71% 9.96% 38.33%
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