Hong Kong Monetary Authority: Preparation work for the promotion of Digital HK Dollar for personal use is expected to be completed in the first half of next year.

The Hong Kong Monetary Authority (HKMA) has released the Second Phase Report of the E-Currency Pilot Scheme, detailing the trial results and experiences. The HKMA stated that it will continue to advance preparatory work in policy, legal, and technological aspects to prepare for the potential extension of the E-Currency to individuals and businesses in Hong Kong. The relevant preparatory work is expected to be completed in the first half of 2026, and the timing of expanding the E-Currency will be adjusted based on international developments, latest technological advancements, and market demand. The report indicated that the 11 trials in the second phase covered 3 major themes of innovative use cases, including tokenized asset settlement, programmability, and offline payments. The trial results showed that the E-Currency and tokenized deposits can facilitate cost-effective, programmable, and robust transactions, benefiting users. The trials also found that due to Hong Kong's robust banking regulatory system and comprehensive consumer protection, citizens have high trust in Hong Kong's stable banking system, leading to a similar level of acceptance of the E-Currency and tokenized deposits (i.e. tokenized form of commercial bank deposits). The HKMA stated that the current demand for the E-Currency is primarily focused on wholesale scenarios, therefore, the future priority will be to develop the E-Currency for wholesale use, promoting financial institutions to use the E-Currency for payments. Some financial institutions have already used the E-Currency in certain cases to support the development of tokenized ecosystems and cross-border payment scenarios, such as international trade settlements. The HKMA will publish a set of common tokenization standards to promote the widespread application of digital currency programmability. These standards are intended to establish a foundation for the future development and application of the E-Currency to meet the payment needs of individuals and businesses in Hong Kong. Eddie Yue, Chief Executive of the HKMA, stated that the two phases of the E-Currency Pilot Scheme have achieved significant results, and he is pleased to see the gradual application of the E-Currency by financial institutions in more wholesale scenarios. The HKMA will continue to prepare for the potential expansion of the E-Currency to retail scenarios in the future.