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IPFS News Link • Central Banks/Banking

CBDCs: Hong Kong Monetary Authority (HKMA) Introduces Phase 2 of e -HKD Pilot


The Hong Kong Monetary Authority (HKMA) confirmed the launch of Phase 2 of the e-HKD Pilot Program, with a view to further "exploring innovative use cases for an e-HKD in Hong Kong."

The HKMA completed Phase 1 of the e-HKD Pilot Program "in October 2023 and had studied domestic retail use cases in various areas such as programmable payments, settlement of tokenised assets, and offline payments."

Building on the success and experience of Phase 1, the next phase will delve deeper into select pilots from Phase 1 where "an e-HKD could add unique value, namely programmability, tokenization and atomic settlement, as well as explore new use cases that have not been covered in the previous phase."

An enhanced e-HKD sandbox, "leveraged on the wholesale central bank digital currency (wCBDC) sandbox to be built under Project Ensemble, will support Phase 2 of the e-HKD Pilot Program to accelerate the prototyping, development and testing of use cases by pilot participants, as well as facilitate the study of interoperability and interbank settlement between e-HKD and other forms of tokenized money."

Research on the e-HKD will continue "to underpin the HKMA's broader work in exploring the roles central bank digital currencies (CBDCs) could play in a future digital money landscape. The HKMA has been conducting a number of in-depth research projects with the CBDC Expert Group on topics including programmability, privacy and interoperability."

The outcomes and insights gained from both phases of the e-HKD Pilot Program and the researches by the CBDC Expert Group "will facilitate the HKMA's study on the possible implementation of an e-HKD."