Commencement of the e-HKD Pilot Programme

The Hong Kong Monetary Authority (HKMA) has published a press statement to announce the initiation of the e-HKD Pilot Programme which aims to explore the potential of a retail central bank digital currency (CBDC) known as e-HKD. For a first round of pilot projects taking place in 2023, the HKMA selected 16 firms from the financial, payment, and technology sectors, including the Bank of China and the Hongkong and Shanghai Banking Corporation Limited.
The e-HKD Pilot Programme will cover a diverse range of use cases within six categories. These include: „full-fledged payments, programmable payments, offline payments, tokenised deposits, settlement of Web3 transactions and settlement of tokenised assets.“ By applying these use cases, the HKMA aims to gather valuable insights and explore the practical implementation of e-HKD in various contexts. Although a final decision has not been made as to the introduction of an e-HKD, the HKMA plans to closely engage with the selected firms, monitor progress, and share key learnings with the public during Hong Kong FinTech Week 2023.
Looking ahead, the HKMA expects to conduct additional rounds of pilots with industry participants, reinforcing its commitment to actively explore the possibilities of e-HKD. To facilitate collaboration among the government, industry, and academia in CBDC research, the HKMA also plans to establish a CBDC Expert Group, comprised of leading „academics from local universities“. This expert group will bring valuable perspectives and insights as regards policy and technical issues surrounding a CBDC.
The e-HKD Pilot Programme serves as a crucial component of Rail 2, which is part of the HKMA’s three-rail approach towards CBDC implementation. It plays a pivotal role in preparing the groundwork for a potential retail CBDC in Hong Kong.