Hong Kong Ventures into the Future of Digital Currency with e-HKD+ Expansion
On Monday, the Hong Kong Monetary Authority (HKMA) initiated Phase 2 of the e-HKD pilot program, aiming to explore new avenues in digital currency, including tokenized deposits and e-HKD. The project has been renamed Project e-HKD+, signifying its broader focus on the expanding digital money ecosystem. The following details were disclosed in the announcement:
In Phase 2, a total of 11 groups from various sectors have been chosen to investigate innovative use cases for e-HKD and tokenized deposits in three primary areas: settlement of tokenized assets, programmability, and offline payments.
The participating firms are as follows: Hang Seng Bank, Aptos Labs, Boston Consulting Group (BCG), HSBC, Standard Chartered, Blackrock, Mastercard, Liberea, Visa, ANZ, Fidelity, Chinaamc Bank of China (Hong Kong), Sanfield (Management) Limited, China Construction Bank (Asia), DBS, Kasikornbank (Kbank), Airstar Bank, Bank of Communications (Hong Kong), China Mobile (Hong Kong), and ICBC (Asia). These firms have been divided into 11 groups.
In addition to exploring the technical aspects, the selected firms will also assess the commercial viability of these digital money forms. The HKMA aims to identify practical challenges in establishing a digital money framework that incorporates both public and private currencies.
The e-HKD Pilot was launched by the Hong Kong Monetary Authority in 2023 as part of its broader initiative, Project e-HKD. The pilot program aims to explore the development and potential use cases of the central bank digital currency (CBDC), e-HKD, within Hong Kong’s financial system. The first phase of the pilot focused on examining the foundational technologies and infrastructure required for implementing e-HKD, setting the stage for further exploration.
To facilitate collaboration and address industry-wide concerns, the HKMA will establish the e-HKD Industry Forum. Eddie Yue, HKMA Chief Executive, expressed his anticipation for close cooperation with industry participants in Phase 2.
An e-HKD sandbox will be utilized to prototype and test various use cases, and the key findings are expected to be shared by the end of 2025.
What are your thoughts on the HKMA’s endeavors to explore the potential of digital money and e-HKD? Let us know in the comments section below.
