The Hong Kong Monetary Authority (HKMA) published the “e-HKD Pilot Programme Phase 2 Report”, presenting findings from 11 industry pilot groups under Phase 2 of the e-HKD Pilot Programme.

The report also outlines the HKMA’s current policy stance on the e-HKD.

Since 2017, the HKMA has conducted exploratory work on a central bank digital currency (CBDC), the e-HKD, using distributed ledger technology (DLT).

This work has considered potential applications in both wholesale and retail scenarios.

Phase 2 focused on evaluating the commercial viability and scalability of an e-HKD in retail use cases, and compared it with tokenised deposits to assess the unique value an e-HKD could provide.

The 11 pilots examined use cases across three themes: settlement of tokenised assets, programmability, and offline payments.

Results indicated that both e-HKD and tokenised deposits can enable cost‑efficient, programmable, and resilient transactions.

A notable finding was that the public perceived e-HKD and tokenised deposits similarly, reflecting high trust in Hong Kong’s banking system, supported by robust supervision and consumer protection.

As e-HKD is issued by the HKMA and free from credit risk, it is particularly suitable for large-value transactions.

The HKMA therefore considers wholesale applications the immediate priority and will focus future work on supporting tokenisation and cross-border payments, including international trade settlements.

The HKMA will continue developing the policy, legal, and technical framework to prepare for potential future retail use by individuals and corporates, with preparatory work expected to conclude by the first half of 2026.

Implementation will depend on international developments, technological advances, and market needs.

As part of the e-HKD Industry Forum, the HKMA will publish common token standards to support wider adoption of programmability in digital money and provide a basis for potential future e-HKD development.

Eddie Yue, Chief Executive of the HKMA, said:

“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.”

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