Hong Kong Starts New Phase of CBDC Testing
The Hong Kong Monetary Authority (HKMA) has initiated the second phase of its central bank digital currency (CBDC) pilot, the e-HKD. The central bank will continue testing from the first phase and explore new applications of a digital version of the Hong Kong dollar. Phase 1 of the pilot program tested the use of a CBDC in domestic retail payments, offline payments, and settlement of tokenized assets. The next phase will further investigate select pilots from Phase 1 where an e-HKD could add unique value, such as programmability, tokenization, and atomic settlement. Additionally, it will explore new use cases not covered in the previous phase. The HKMA has also started a regulatory sandbox project to test CBDCs for wholesale use and tokenization. Organizations interested in participating in the pilot can apply by May 17.
