- HKMA’s Project e-HKD+ seeks to investigate advanced CBDC applications.
- Eleven firms will evaluate the viability of digital currencies in real-world circumstances.
The Hong Kong Monetary Authority (HKMA) has formally launched the second phase of its Central Bank digital currency (CBDC) pilot program, now known as Project e-HKD+, in a statement issued on September 23.This next phase will concentrate on advanced use cases for digital currency, with a focus on e-HKD and tokenized deposits for individuals and businesses.
The initial phase focused on evaluating CBDC applications for domestic retail payments, offline transactions, and tokenized asset settlement. The HKMA’s transition to Project e-HKD+ indicates its response to the rapidly changing fintech landscape and commitment to promoting innovation in digital currencies.
Collaborating with industry leaders
To fulfill its objectives, the HKMA has hired 11 organizations from various industries to research e-HKD applications in three key areas: tokenized asset settlement, programmability, and offline payments. Prominent participants in this phase include ANZ, Airstar Bank, Aptos Labs, BlackRock, Bank of Communications (Hong Kong), ChinaAMC, China Mobile, DBS, Fidelity International, Kasikornbank, and Sanfield.
The HKMA wants for these firms to examine the commercial viability of new forms of digital money in real-world settings, hence increasing accessibility for both individuals and corporations. The findings from Phase 2 will give light on the practical issues of developing a digital currency ecosystem that smoothly incorporates publicly and privately issued digital currencies.
To encourage collaboration, the HKMA will launch the e-HKD Industry Forum, which will allow participating institutions to address common difficulties and investigate scalable implementations of new digital money forms. Initially, industry-led working groups will prioritize programmability.
Pilot participants will have access to an e-HKD sandbox, as they did in the first phase, to prototype, create, and test use cases.Over the following 12 months, the HKMA will collaborate closely with the chosen enterprises, sharing key findings with the public by the end of next year.
HKMA CEO Eddie Yue noted, “Project e-HKD+ demonstrates the HKMA’s dedication to digital money innovation. The e-HKD Pilot Programme has given the HKMA an invaluable chance to investigate how new forms of digital money might deliver distinctive value to the public.”
