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Hong Kong’s digital currency: HKMA launches phase 2 of e-HKD pilot programme, delving deeper into potential uses
- Second phase will explore ‘innovative’ uses for a central bank digital currency for public use, says HKMA, five months after unveiling results of first trial run
- It represents the next step towards introducing a virtual coin that the public may eventually use to shop, dine out, and transfer money
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The Hong Kong Monetary Authority has launched the second phase of a pilot programme to explore “innovative” uses for a central bank digital currency (CBDC) for public use, five months after it unveiled the results of the first trial run.
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“Building on the success and experience of phase 1, the next phase will delve deeper [to explore] where an e-HKD could add unique value, namely programmability, tokenisation and atomic settlement,” the HKMA said in a press release on Thursday. Atomic settlement refers to instant payments.
In October, the city’s de facto central bank completed the first trial run of the e-HKD featuring 16 banks and payment companies and their six “use cases” with a small group of clients. The six use scenarios tested were online payments, payments in shops and restaurants, the collection of government payouts, tokenised deposits, tokenised asset settlement and Web3 trading and clearing.
It represented the first step towards introducing a virtual coin that the public may eventually use to shop, dine out, and transfer money.
HSBC, Hong Kong’s biggest bank, took part and intends to participate in the second phase.
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“HSBC has been a key participant in the e-HKD pilot and is keen to drive initiatives on all fronts of digital money. We look forward to participating in Phase 2 of the e-HKD pilot programme,” a spokesman said.
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