HKMA finishes e-HKD Pilot Programme and describes future instructions of e-HKD
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The following is released on behalf of the Hong Kong Monetary Authority:
The Hong Kong Monetary Authority (HKMA) today (October 28) released the “e-HKD Pilot Programme Phase 2 Report” (the report), which provides the essential findings and knowings from 11 groups of market pilots under Phase 2 of the e-HKD Pilot Programme (Phase 2). The report likewise sets out the HKMA’s most current policy position relating to the e-HKD.
Because 2017, the HKMA has actually started explorative deal with a reserve bank digital currency (CBDC), i.e. an e-HKD, utilizing dispersed ledger innovation (DLT) as its structure. This work has actually covered the possible applications of an e-HKD in both wholesale and retail circumstances. Stage 2 examined the business practicality and scalability of an e‑HKD in different retail circumstances. It likewise compared an e-HKD with tokenised deposits (a tokenised representation of bank deposits) to evaluate the unique worth that an e-HKD can generate retail circumstances.
The 11 pilots under Phase 2 checked out ingenious usage cases throughout 3 primary styles, specifically settlement of tokenised possessions, programmability, and offline payments. The outcomes of the pilots showed that an e-HKD and tokenised deposits can provide advantages by making it possible for cost‑efficient, programmable, and resistant deals. An essential finding was that the general public viewed an e-HKD and tokenised deposits likewise, offered the general public’s high level of rely on Hong Kong’s steady banking system, underpinned by a robust supervisory program and strong customer defense.
As the e-HKD is released by the HKMA and is devoid of credit threat, it is especially appropriate for large-value deals. The HKMA has actually for that reason concluded that the instant top priority for the e-HKD depends on locations beyond retail usage cases at this phase and will for this reason prioritise the future e-HKD operate in wholesale payments, which has actually currently been executed in some applications, to support the advancement of the tokenisation environment and cross-border payments, such as settlements of global trade.
Moving forward, the HKMA will continue its effort to prepare a strong policy, legal, and technical structure, with the objective to lay the ground for prospective future usage of an e-HKD for people and corporates in Hong Kong. This preparatory work will be finished by the very first half of 2026, and the timeframe for executing any such extension would go through global advancements, newest innovations, and market requirements.
As one of the crucial results of the e-HKD Industry Forum, the HKMA will release a set of typical token requirements, which will serve to assist in the scaled adoption of programmability in digital cash. These requirements are meant to offer a structure for the possible future advancement and adoption of an e-HKD targeted at serving the requirements of people and corporates in Hong Kong.
The Chief Executive of the HKMA, Mr Eddie Yue, stated “The two phases of the e-HKD Pilot Programme have yielded insightful findings that shape the HKMA’s understanding of the future of digital money. We are encouraged to see that the e-HKD has gradually been used in more wholesale applications by financial institutions, and we will continue to ensure Hong Kong is well-prepared for the potential future extension of the e-HKD in retail scenarios. We thank all participants of the e-HKD Pilot Programme for their strong commitment and contribution over the past three years. We look forward to continuing our close partnership with the industry as part of our CBDC and tokenisation journey.”
The report is readily available on the HKMA site. Information of each pilot can be discovered in the factsheets and additional reports prepared by the pilot individuals, available through the links in Appendix A of the report.