Hong Kong's digital Hong Kong dollar pilot completed: institutional applications prioritized, full deployment by mid-2026.

The Hong Kong Monetary Authority recently completed the second phase of the digital Hong Kong dollar pilot program, clearly prioritizing the development of wholesale financial application scenarios. The pilot results show that e-HKD and tokenized deposits can achieve “cost controllable, programmable, and secure transactions.” The Monetary Authority plans to complete policy, legal, and technical preparations by mid-2026 and issue a unified tokenization standard to lay the foundation for the formal launch of the digital Hong Kong dollar.

Pilot results are fruitful: Programmable currency demonstrates practical application value

The feasibility of multi-scenario verification technology

In the second phase of the pilot, the Hong Kong Monetary Authority collaborated with banks, technology companies, and financial service providers to conduct 11 experimental projects, focusing on testing the performance of the digital Hong Kong dollar in real scenarios, and comparing it with the digital representation of commercial bank currency – tokenized deposits.

The experimental results indicate that both forms of digital currencies can effectively promote “cost-controllable, Programmability, and secure transactions.” This finding provides important practical evidence for Hong Kong's advancement of digital currency, demonstrating the significant advantages of digital currency in improving transaction efficiency and reducing operational costs.

Public trust lays the foundation for promotion.

A notable finding during the pilot process is that, thanks to Hong Kong's sound banking regulatory framework and comprehensive consumer protection mechanisms, the public has shown a high level of trust in the Special Administrative Region's digital currency program. This foundation of trust, combined with the central bank's open and transparent development process, has garnered widespread support and acceptance from both institutional and retail users for the digital Hong Kong dollar and tokenized deposits.

Institutional Demand Leads: Wholesale Finance Becomes a Priority Direction

The actual application has quietly started.

Market research shows that institutional investors have a significantly higher demand for Hong Kong's Central Bank Digital Currency (CBDC) compared to retail investors. In fact, some financial institutions have begun using e-HKD for tokenization ecosystem construction and international trade settlement, indicating its actual utility in the global financial sector.

This discovery prompted the Monetary Authority to adjust its development strategy, deciding to prioritize the “wholesale application” of the digital Hong Kong dollar and promote it as a payment tool between financial institutions. This strategic positioning aligns with Hong Kong's development needs as an international financial center and is also conducive to the rapid implementation of digital currency in professional fields.

Positioning in the Global Financial Landscape

The priority deployment of the digital Hong Kong dollar on the institutional side reflects Hong Kong's differentiated strategy in the competition of digital currencies. Unlike some economies that mainly focus on retail CBDCs, Hong Kong places greater emphasis on the role of digital currencies in enhancing the efficiency of financial infrastructure and consolidating its position as an international financial center.

Technical Standards First: Building a Unified Tokenization Ecosystem

Standardization promotes large-scale applications

As an important part of the launch plan, the Monetary Authority will release a set of tokenization standards to promote the widespread adoption of Programmability digital currency. These standards aim to serve as the foundational framework for the future development and application of the digital Hong Kong dollar, ensuring interoperability and technical consistency between different systems.

Standardization work is crucial for the construction of the digital currency ecosystem. Unified technical standards can reduce access costs, improve system efficiency, and provide a stable development environment for innovative applications, thereby accelerating the large-scale application of digital Hong Kong dollars.

Continuous optimization of technical architecture

Since starting research on Central Bank Digital Currency (CBDC) in 2017, the Hong Kong Monetary Authority has regarded blockchain technology as a core building element. In 2023, the project was officially renamed as the digital Hong Kong dollar (e-HKD), marking the basic determination of the technical route and the in-depth advancement of development work.

Clear Development Roadmap: Complete Comprehensive Preparation by Mid-2026

Three-layer Promotion Strategy

Based on the pilot results and market demand, the Monetary Authority has formulated a clear development roadmap:

• Priority Level: Focus on developing wholesale financial applications to serve institutional clients.
• Standard Construction: Release a unified tokenization standard to build a technical foundation.
• Comprehensive Preparation: Complete the supporting system of policy, law, and technology by mid-2026.

Retail applications continue to explore

Although the priority is currently on developing institutional applications, exploration of retail scenarios has not ceased. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, stated that both phases of the digital currency pilot program have achieved significant results, which will help the authority further understand the development path of digital currencies. Financial authorities will continue to advance this project to prepare for future expansion into retail applications.

Practical Verification: Steady Progress from Testing to Application

Positive feedback received from real environment testing

In August 2025, the Hong Kong branch of the Bank of China completed the e-HKD test, distributing simulated digital Hong Kong dollar coupons to nearly 500 participants holding a unified wallet. Users were able to make purchases at local coffee shops, completing over 1,500 test transactions. This test validated the technical feasibility and user experience of the digital Hong Kong dollar in retail scenarios.

Digital HKD Plus Framework

The Digital Hong Kong Dollar project is part of the larger “Digital HKD Plus” initiative, which aims to explore the application of digital currencies in real-world scenarios. If e-HKD is officially launched, it will become the first recognized digital payment method in the region, marking the entry of Hong Kong's monetary system into a new digital era.

Strategic Significance from an International Perspective

Consolidate the position of the financial center

Hong Kong is actively promoting the construction of the digital Hong Kong dollar, not only to keep up with the global wave of digital currency development but also to consolidate its status as an international financial center. By enhancing the modernization of financial infrastructure through digital currency, Hong Kong can maintain its advantages in the increasingly fierce international financial competition.

docking with national strategy

As a special administrative region of China, the development of the digital Hong Kong dollar also echoes national strategies such as the internationalization of the Renminbi and the construction of the Guangdong-Hong Kong-Macao Greater Bay Area. The digital Hong Kong dollar is expected to interact positively with the digital Renminbi in the future, jointly promoting regional financial cooperation and innovation.

Conclusion

The successful completion of the pilot program for the Hong Kong Digital Hong Kong Dollar marks a solid step forward for this international financial center on the path to currency digitalization. From a strategic choice prioritizing institutional applications to a comprehensive deployment timeline by mid-2026, Hong Kong has demonstrated a systematic thinking and pragmatic attitude towards advancing digital currency.

The experience of Hong Kong provides an important reference for the development of global digital currencies. Its strategy, which emphasizes wholesale financial applications, focuses on standardization construction, and considers the needs of both institutions and retail, offers a replicable development path for other economies. As the completion period for preparations in 2026 approaches, the digital Hong Kong dollar is expected to inject new digital momentum into the construction of Hong Kong as an international financial center.

In the context of digital currency reshaping the global financial landscape, Hong Kong's choices are not only related to the evolution of the local financial ecosystem but will also play an important role in the digital transformation of the international financial system. The future development of the digital Hong Kong dollar is worth continued attention.