Catenaa, Thursday, November 06, 2025-Hong Kong’s CBDC pilot, the e-HKD, has entered Phase Two, exploring broader applications for both wholesale and retail digital money, the Hong Kong Monetary Authority (HKMA) reported.
The initiative aims to position Hong Kong as a global hub for digital finance and tokenized payments.
Phase Two involved 11 industry partners, including banks, payment providers, and technology firms, assessing three key areas: settlement of tokenized assets, programmable payments, and offline transaction capabilities.
Early results indicate that DLT-based settlement could reduce processing times from T+2 to T+0, improving liquidity and lowering counterparty risk.
Programmable payments, such as smart-contract-enabled vouchers and supply chain financing, were tested but found to have limited commercial viability at scale. Offline e-HKD trials using NFC and Super SIM technology showed minimal incremental benefit due to Hong Kong’s strong digital infrastructure.
The HKMA report highlights a distinction between public digital money, represented by the e-HKD, and private forms, including regulated stablecoins and tokenized deposits.
The pilot seeks to integrate these systems, enabling faster, more transparent, and programmable financial transactions while maintaining public oversight.
Moving forward, HKMA plans to prioritize wholesale applications, particularly in tokenized asset settlement and interbank transactions, while continuing technical, legal, and policy preparations for retail rollout by 2026. The Phase Two findings will guide commercial adoption and interoperability with private digital money innovations, reinforcing Hong Kong’s strategic role in shaping the future of money.
