Looking ahead, given that it is hard to explain the relative weakness of the euro, it is reasonable to expect that it may in due course recover to more realistic levels; and there has indeed been some welcome movement in that direction since the spring. Whether that will continue is hard to judge, but it would be enormously helpful both to the balance of the UK economy as a whole and to the individual businesses most directly affected. The other major area of uncertainty we face is the encouraging and exciting, if somewhat tantalising, prospect that the UK may come to enjoy, or indeed may already be beginning to enjoy, some of the benefits evident in the US arising from the “new economy”. The advances we are seeing in information and computer technology, when combined with the greater flexibility and adaptability our economy has shown in recent years and the wider trading opportunities and greater competitiveness flowing from the globalisation of the world economy, are potentially very exciting because they represent scope for improvements in the supply side of the economy: they hold out the possibility that the economy might be able to grow faster than recent historical experience without jeopardising price stability. The dilemma is that, while the benefits these developments can bring are undoubted, if and when they manifest themselves in enhanced economic performance, the evidence of their doing so in the UK is, so far, piecemeal rather than conclusive.
Eddie Yue: Opening remarks at the commencement event of e-HKD Pilot Programme Opening remarks by Mr Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, at the commencement event of e-HKD Pilot Programme, Hong Kong, 18 May 2023. *** Good afternoon, everyone. A very warm welcome to all of you for joining today's commencement of the e-HKD Pilot Programme, especially to those of you flying from other parts of the world. Central bank digital currency, or CBDC, is one of the hottest topics in the central banking community today. Over a hundred central banks are studying it and a few dozens of them are working on various types of pilot trials. The HKMA has been researching and piloting on CBDC since 2017. Apart from the exciting work that we are doing with our three partner central banks on the application of wholesale CBDC under Project mBridge, the HKMA has also been exploring the prospect of issuing retail CBDC, or e-HKD, in Hong Kong. e-HKD is Beyond Technology We conducted two rounds of market consultation in the past two years. Overall, the respondents are supportive of the e-HKD initiative and believe that e-HKD has the potential to make payments faster and more efficient while supporting the digital economy. However, we are cognizant of the fact that e-HKD is not and should not be merely a technology project.