Focusing on three main areas—the settlement of tokenized assets, programmability, and the capacity for offline payments—this next phase will develop inside a controlled sandbox environment over the next year The HKMA’s focus on these issues demonstrates its will to progress the legal systems and technologies required for a strong digital currency ecosystem.
Working on a noteworthy use case are Hang Seng Bank, Aptos Lab, and Boston Consulting Group. Using digital money on a public blockchain, they will evaluate the possibility of settling tokenized funds, thereby improving fund management techniques’ efficiency and openness. Major firms including Visa, ANZ, Fidelity, and China AMC are also trying to enable very rapid settlements for cross-border payments and interbank transfers using the e-HKD and tokenized deposits.
Project e-HKD+ has very interesting programmable aspects. Among the various uses the HKMA has described include an environmental, social, and governance (ESG) awards system created by DBS Bank. Moreover, Bank of Communications (Hong Kong) and China Mobile (Hong Kong) are looking at employing e-HKD kept on mobile SIM cards to facilitate offline transactions, hence improving access in places with poor connection.
The HKMA will set an e-HKD Industry Forum as part of this ambitious project to promote cooperation among participants. With an initial concentration on programmability, this platform will enable conversations on shared difficulties and open the path for industry-led working groups to address particular issues. Working with Cyberport, the HKMA is also starting a Generative AI sandbox to investigate artificial intelligence uses in banking, including anti-fraud policies and risk management tools.
The e-HKD project started in 2021, and the most recent initiatives by the HKMA show a great will to use digital currency innovation for the benefit of the whole society. As the pilot program develops, we will provide public insights from these experiments, thereby adding to the continuous conversation on the direction of digital money in Hong Kong and beyond.
Project e-HKD shows the HKMA’s dedication to investigating the possibilities of the e-HKD via creative applications and cooperative efforts with important financial institutions, thereby reflecting a major progress in the evolution of digital currency in Hong Kong.
