The Hong Kong Monetary Authority (HKMA) has launched the second phase of its initiative to explore digital money, expanding its focus from just a central bank digital currency (e-HKD) to also include tokenised deposits.
The HKMA completed Phase 1 of the e-HKD Pilot Programme in October 2023 and had studied domestic retail use cases in various areas such as programmable payments, settlement of tokenised assets, and offline payments.
This broader exploration, now called Project e-HKD+, reflects the HKMA’s commitment to investigating innovative forms of digital money for both individuals and businesses.
Phase 2 of the pilot involves 11 firms from various sectors, testing the practical use cases of digital currencies in areas such as tokenised asset settlement, programmable payments, and offline transactions. The programme aims to assess how these digital money systems can work commercially.
“The e-HKD Pilot Programme has provided a valuable opportunity for the HKMA to explore with the industry how new forms of digital money can add unique value to the general public,” said Eddie Yue, chief executive of the HKMA. “We look forward to working closely with industry participants in Phase 2 to co-create various innovative use cases.”
Industry collaboration
As part of the initiative, the HKMA will establish the e-HKD Industry Forum, a platform for participating firms to discuss challenges and opportunities. Industry-led working groups will focus on specific topics, beginning with the programmability of digital money.
Over the next year, the HKMA will collaborate with firms to explore these real-world applications, with key findings to be shared by the end of 2025. Project e-HKD+ will continue to build the legal and technological framework needed to support the potential future issuance of digital money in Hong Kong.
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