Hong Kong monetary authority has taken a decisive step forward in its digital currency ambitions by launching Phase 2 of its e-HKD pilot programme. With 11 industry consortia selected to explore real-world use cases and new forms of digital money including tokenised deposits, the city is positioning itself at the forefront of the digital-money evolution.
Phase 2 marks a significant shift in Hong Kong’s approach to digital money. While the first phase focused largely on retail-oriented trials—payments, tokenised assets, offline transfers—the second phase expands both scale and scope. The HKMA has rebranded the initiative as Project e-HKD+ to underline its broader agenda: not only a retail central-bank digital currency (CBDC) but also privately issued digital deposits and tokenised money infrastructure.
The 11 selected consortia include banks, asset-managers, blockchain firms and payment giants, all tasked with exploring three key themes: settlement of tokenised assets, programmability of digital money, and offline payment capability.
From theory to real-world digital money infrastructure
In practical terms, the pilots under Phase 2 will test scenarios such as: using e-HKD or tokenised deposits to purchase tokenised funds, enabling near-real-time delivery-versus-payment (DvP) settlement across borders, embedding programmable payment conditions (e.g., rewards or ESG-linked disbursements), and allowing wallet transfers without network connection. These use cases reveal that the HKMA is moving beyond mere proof-of-concept toward infrastructure design and commercial feasibility. The findings will inform how digital money can become a utility for both individuals and corporates.
Strategically, this gives Hong Kong an edge in the global digital-money race. With China already advanced in its digital-yuan work and other jurisdictions pursuing retail CBDCs, Hong Kong is emphasising a bridge between private fintech innovation and central-bank-issued money. By integrating tokenised assets, offline payments and programmable features, the city is not simply aiming for a digital HKD — it is designing a full digital-money ecosystem.
However, challenges remain. The adoption of digital money will depend on user behaviour, merchant integration, regulatory and legal frameworks (especially around tokenised deposits), and interoperability with existing payment systems. Philanthropic pilots alone don’t guarantee mass market uptake.
In summary: Hong Kong’s move into Phase 2 of its e-HKD pilot signals a meaningful pivot—away from exploratory design toward real-world infrastructure testing. If the consortia succeed and the findings validate scalability and utility, the city could unlock new channels of digital-money usage well beyond traditional payments.
