Digital Currency: Hong Kong’s CBDC Pilot Testing Enters Phase 2

Vinod Dsouza
hong kong flag cbdc digital currency
Source: Watcher Guru

The Hong Kong Monetary Authority (HKMA) confirmed that they are in phase two of pilot testing the central bank-issued digital currency (CBDC). The e-HKD pilot program will explore tokenized deposits for day-to-day payments and asset settlement options. In addition, HKMA announced that 11 firms have been selected to be a part of the pilot testing process. The firms include financial institutions, banks, and management companies.

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The 11 firms will work closely with HKMA and integrate the CBDC digital currency using innovative methods and standards. “Under phase 2, 11 groups of firms from various sectors have been selected to explore innovative use cases for e-HKD and tokenized deposits across three main themes, namely settlement of tokenized assets, programmability, and offline payments,” read the report.

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Hong Kong’s Digital Currency (CBDC) Testing Advances Rapidly in Phase 2

hong kong flag
Source: Crypto News

Hong Kong’s CBDC digital currency could be launched in 2027 after completing all the necessary and required testing phases. The key findings of the phase two testing will be shared with the public by late 2025. If successful, Hong Kong will usher into a new financial era equipping currencies to go the digital way.

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Around 134 countries around the world are currently in the pilot phase of testing their respective CBDC digital currencies. Also, out of the 134 countries, 66 nations have already entered the advanced phase two methods of testing. “We look forward to working closely with industry participants in Phase 2,” said Chief Executive of HKMA, Eddie Yue.

Moreover, the firms that will participate in Hong Kong’s digital CBDC currency are Hang Seng Bank, Aptos Labs, Boston Consulting Group (BCG), HSBC, Standard Chartered, Blackrock, Mastercard, Liberea, Visa, ANZ, Fidelity, Chinaamc Bank of China (Hong Kong), Sanfield (Management) Limited, China Construction Bank (Asia), DBS, Kasikornbank (Kbank), Airstar Bank, Bank of Communications (Hong Kong), China Mobile (Hong Kong), and ICBC (Asia).