Hong Kong Monetary Authority: Preparation Work for Retail Use of Digital Hong Kong Dollar to Be Completed in the First Half of Next Year

On October 29th, the Hong Kong Monetary Authority (HKMA) issued the Phase 2 report of the "e-Hong Kong Dollar" pilot scheme, presenting the trial results and experiences. The HKMA declared that it will continuously make progress in preliminary work in terms of policy, law, and technology to prepare Hong Kong for the potential future expansion of the "e-Hong Kong Dollar" for individual and corporate use. The relevant preparatory work is expected to be completed in the first half of 2026, and the timing for expanding the "e-Hong Kong Dollar" will be adjusted according to international developments, the latest technological advancements, and market demand. The report disclosed that the 11 sets of trials in Phase 2 cover 3 major thematic innovation use cases, namely tokenized asset settlement, programmability, and offline payments. The HKMA stated that the current demand for the "e-Hong Kong Dollar" is mainly outside the retail scenario. Therefore, the future focus will be on developing the "e-Hong Kong Dollar" for wholesale use and promoting financial institutions to use the "e-Hong Kong Dollar" for payments. Some financial institutions have already used the "e-Hong Kong Dollar" in certain use cases to support the development of the tokenized ecosystem and cross-border payment scenarios, such as international trade settlement. The HKMA will announce a set of common tokenization standards to promote the widespread programmability of digital currency. These standards are intended to lay the foundation for the future development and application of the "e-Hong Kong Dollar" to meet the payment needs of individuals and businesses in Hong Kong. (ChainNews)