The Hong Kong Monetary Authority (HKMA) has initiated the second phase of its digital Hong Kong dollar pilot study, known as Project e-HKD. In this phase, 21 financial institutions are collaborating on 11 use cases that focus on three main themes: the settlement of tokenized assets, programmability, and offline payments.
As part of the initiative, the HKMA will establish the e-HKD Industry Forum, intended as a "collaborative platform" for institutions to address common challenges. Several industry-led working groups will also be formed to make recommendations on specific topics.
Notable use cases include the settling of a tokenized fund using digital currency, which involves partners such as Hang Seng Bank, Aptos Lab, and Boston Consulting Group. Another use case involves Visa, ANZ, Fidelity, and ChinaAMC, exploring real-time settlement for interbank transfers and cross-border payments.
HKMA Chief Executive Eddie Yue indicated that this second phase will extend for approximately one year. He stated, “The e-HKD Pilot Programme has provided a valuable opportunity for the HKMA to explore with the industry how new forms of digital money can add unique value to the general public. The HKMA will continue to adopt a use-case driven approach in its exploration of digital money. We look forward to working closely with industry participants in Phase 2 to co-create various innovative use cases.”
Additionally, the HKMA has opened applications for its Gen AI sandbox, a project announced in August that involves state-owned tech firm Cyberport. This initiative will permit authorized institutions to test their AI-based prototypes in a controlled environment while receiving guidance from the regulator and access to Cyberport’s infrastructure.
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