Hong Kong authorities have concluded the second phase of the e-HKD pilot program, with the introduction of the central bank digital currency aimed primarily at institutional investors.
summary
- The Hong Kong Monetary Authority (HKMA) has completed Phase II of its Digital Hong Kong Dollar Pilot Program, revealing that both e-HKD and tokenized deposits are cost-effective, programmable and enable secure transactions.
- Following the trial, the HKMA will prioritize the development of e-HKD for wholesale financial applications, issue common tokenization standards, and complete policy, legal and technical preparations by mid-2026.
According to local media reports, the Hong Kong Monetary Authority has completed the digital Hong Kong dollar pilot program and released a report summarizing the key results of the pilot. Once the necessary preparations are made, the company plans to roll out the digital currency for institutional customers.
Phase II of the pilot program focused on testing the real-world application of e-HKD and comparing it to tokenized deposits, which are digital representations of commercial bank money. A total of 11 pilot projects were carried out in collaboration with banks, technology companies and financial service providers.
Based on the results of the trial, the authorities concluded that digital Hong Kong dollars and tokenized deposits can be used to facilitate “cost-effective, programmable and robust transactions”.
Moreover, the court also found that Hong Kong's detailed banking regulatory system and comprehensive consumer protection mechanisms have given the public high confidence in the special administrative region's digital currency plan.
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This level of public trust and the central bank's announced rollout of the use of e-HKD and tokenized deposits has garnered widespread support and acceptance from institutional and individual users.
However, authorities have found that there is greater demand for Hong Kong CBDCs among institutional investors compared to retail investors. In fact, some financial institutions have already started using e-HKD for tokenized ecosystem development and international trade payments, demonstrating the utility of e-HKD in global finance.
As a result, the HKMA plans to prioritize the development of e-HKD for “wholesale use” and promote its use as a payment method for financial institutions. In preparation for implementation, regulators are preparing policies, legal frameworks, and technology to support e-HKD. These preparations are expected to be released during the first half of 2026.
Development of e-HKD
As part of the rollout, the HKMA will issue a set of tokenization standards to facilitate the uptake of programmable digital currencies. This standard is intended to be the basis for the future development and application of the digital Hong Kong dollar.
HKMA Director-General Eddie Yue said both phases of the digital currency pilot program have yielded significant results, which will help the agency further understand the development of digital currencies. He said financial authorities will continue to work on the project for potential expansion into retail use.
In August 2025, the Hong Kong Bank of China completed a test of e-HKD by distributing mock digital HKD vouchers to nearly 500 participants with unified wallets. Users were able to spend the money at local coffee shops and complete over 1,500 test transactions.
Hong Kong's financial authorities have been working on developing a central bank digital currency since 2017 by introducing blockchain technology into its construction. In 2023, the CBDC project was renamed to Digital Hong Kong Dollar or e-HKD.
The project is part of a larger initiative called Digital Hong Kong Plus, which aims to explore the use of digital money in real-world settings. Once officially launched, e-HKD will become the first recognized digital payment method in the region.
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