Hong Kong: New Phase of e-HKD Program on the Way

Authorities in Hong Kong Launch Second Phase of e-HKD Program

Authorities in Hong Kong have announced the commencement of the second phase of the pilot program for e-HKD, focusing on exploring added value through programmability, atomic settlements, and tokenization of the future central digital currency e-HKD.

Exploring New Use Cases

This phase will encompass new use cases that extend beyond the scope explored in the previous phase. The expanded e-HKD sandbox, associated with the Ensemble project, aims to expedite the testing and development of use cases and facilitate the examination of interbank interoperability.

CBDC Decision

It is not yet clear whether the Hong Kong Monetary Authority (HKMA) will opt for a Central Bank Digital Currency (CBDC). Research will continue to assess the role of CBDC in the future digital financial landscape.

Collaboration with Organizations and Stakeholders

Organizations can apply to participate in the second phase of the program until mid-May. HKMA has announced further collaboration with local and international stakeholders on the latest CBDC-related matters.

Ensemble Project

The Ensemble project was announced by the authorities in Hong Kong over the past year, aiming to test use cases related to tokenization. These initiatives may cover various areas, from carbon credits to treasury management.

First Phase of CBDC Pilot

At the end of October last year, HKMA concluded the first phase of the CBDC pilot, demonstrating the potential to enhance consumer protection and build trust through smart contracts between businesses and consumers.

As highlighted, Hong Kong is actively exploring possibilities related to central digital currencies, aiming to understand potential benefits and implement innovative solutions in the realm of finance.