HKMA launches Project e-HKD+ to test digital currency’s commercial feasibility.
Pilot focuses on tokenized assets, programmability, and offline payments innovation.
The Hong Kong Monetary Authority (HKMA) officially commenced the second phase of its central bank digital currency (CBDC) pilot on Monday, renaming the initiative to “Project e-HKD+.” This phase aims to explore the commercial feasibility of the e-HKD through innovative use cases developed by 11 selected firms across various sectors.
Participants in this year-long pilot will focus on three primary themes: the settlement of tokenized assets, programmability, and offline payments. The HKMA has established a sandbox environment for participants to prototype and test these applications. Notable collaborators include Hang Seng Bank, Aptos Lab, and Boston Consulting Group, who will investigate the commercial value of settling tokenized funds using digital currency on a public
blockchain
.
Meanwhile, in addition, industry giants such as
Visa
, ANZ, and Fidelity will examine near-real-time settlements for interbank transfers and cross-border payments. It facilitates the acquisition of tokenized fund units by Australia-based corporate investors in Hong Kong. Other participants include major banks and financial institutions like HSBC, Bank of China, and
BlackRock
.
Optimism About the Project’s Potential
HKMA Deputy Chief Executive Howard Lee highlighted that while the first phase focused on potential use cases, this phase aims to assess the efficiency of e-HKD compared to existing electronic payment systems. Participants will also explore tokenized investments and foreign currency exchanges using digital currency.
Eddie Yue
, Chief Executive of the HKMA, expressed optimism about the project’s potential. He stated it provides valuable insights into how digital money can enhance public services. The HKMA plans to disclose key findings from the second phase by the end of 2025, continuing its exploration of digital currency since research began in 2017. The initiative marks a significant step in the evolution of Hong Kong’s financial landscape. It is paving the way for future advancements in digital currency applications.
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