The Hong Kong Monetary Authority said the preparatory work on the policy, legal, and technical aspects of the digital Hong Kong dollar, or e-HKD, is expected to be completed in the first half of next year.
The HKMA will continue to advance foundational preparations to pave the way for the potential future rollout of the e-HKD for use by individuals and businesses. The authority added that the timing for expanding the e-HKD will be adjusted based on international and technological developments, as well as market demand.
In its Phase 2 pilot program report, the HKMA shared findings and insights from 11 experiments across three key areas: tokenized asset settlement, programmability, and offline payments. Results indicated that the e-HKD and tokenized deposits can enable cost-effective, programmable, and robust transactions, delivering benefits to users.
The trials also revealed strong public trust in Hong Kong's banking system, supported by robust regulation and comprehensive consumer protections. Public acceptance of the e-HKD and tokenized deposits was found to be similar.
As the e-HKD is issued by the HKMA and carries no credit risk, it is considered particularly suitable for large-value transaction settlements. The HKMA noted that current demand for the e-HKD is concentrated outside retail scenarios, with priority given to developing its use at the wholesale level—such as interbank payments.
A common set of tokenization standards will be introduced to support the wider application of programmable digital money. These standards aim to establish a foundation for the future development and use of the e-HKD to meet the payment needs of individuals and enterprises in Hong Kong.
HKMA chief executive Eddie Yue Wai-man said that the two phases of the e-HKD pilot have yielded substantial outcomes.
He expressed encouragement that financial institutions are gradually applying the e-HKD in more wholesale scenarios and reaffirmed the HKMA's commitment to preparing for a possible future expansion into retail usage.
