Hong Kong Pushes Forward Phase 2 of e-HKD Pilot Scheme to Test 11 Use Cases

The Hong Kong Monetary Authority (HKMA) launched Phase 2 of the e-HKD Pilot Scheme on 23 September 2024, to further explore innovative use cases for the electronic Hong Kong dollar (e-HKD) and other new forms of digital currency. The phase includes 11 groups of companies from various sectors, focusing on three main themes: blockchain-based asset settlement, programmability and offline payments.

Objectives of Phase 2

Phase 2 aims to help the HKMA gain a better understanding of the practical issues in designing, implementing and operating a digital currency ecosystem that includes both public and private digital currencies. The e-HKD+ project will continue to advance the technological and legal foundations to support the future issuance of e-HKD for individuals and businesses.

Phase 2 Implementation Timeline

The HKMA will work closely with participating institutions over the next 12 months, with the aim of sharing key lessons from Phase 2 with the public by the end of 2025. An e-HKD sandbox will be provided to pilot participants to accelerate the process of prototyping, developing and testing use cases.

Programme Participants

Participating groups include those who participated in Phase 1, such as Standard Chartered, HSBC, Hang Seng Bank, Boston Consulting Group, Mastercard, Visa, Bank of China, China Construction Bank and ICBC. New members include BlackRock, Fidelity International, Aptos Labs and others.

Conclusion

The launch of Phase 2 of the e-HKD Pilot Scheme demonstrates the HKMA’s commitment to innovation in the digital currency sector. By collaborating with industry organisations, the HKMA hopes to explore how new forms of digital currency can bring unique value to the public and businesses, and prepare for the future implementation of e-HKD.