HSBC Nails Milestone in Hong Kong’s Project e-HKD+ Pilot – Digital Currency Leap Confirmed

Hong Kong’s CBDC push hits turbo mode as banking giant HSBC wraps critical testing phase for the e-HKD+ initiative.

### The Proof Is in the (Digital) Pudding

No theoretical whitepapers here—HSBC just stress-tested real-world transactions under the HKMA’s watch. Results? Seamless interbank settlements and retail wallet integrations that could make legacy SWIFT transfers blush.

### Why TradFi Should Sweat

Project e-HKD+ isn’t some academic exercise. It’s a direct shot across the bow of sluggish cross-border payments—with 24/7 finality and fees that undercut traditional correspondent banking (take notes, Wall Street).

### The Cynic’s Corner

Of course, this ‘innovation’ comes from the same institutions that once charged $50 for wire transfers. How convenient that blockchain efficiency only matters when central banks control the ledger.

HSBC has recently completed experimental testing under the Hong Kong Monetary Authority’s Project e-HKD+. Along with a public survey on perceptions of e-HKD, HSBC brings in new technical and commercial insights into the potential design options of e-HKD, as the city continues to explore the full potential of digital money.

HSBC’s technical use cases under Project e-HKD+ focused on practical issues that may be encountered in designing, implementing and operating a digital money ecosystem, including:

• How digital money can operate on Distributed Ledger Technology environments (“DLT”) for storing and transferring value, and also potentially serve as a settlement utility for tokenised assets
• How to support privacy and security in the design of an e-HKD, tokenised deposits, and other real-world assets through enablers such as Privacy Enhancing Technology (PET) and Decentralised Identity
• How can an e-HKD potentially operate on either public or private DLT at scale

HSBC has also conducted a survey with over 700 individuals in Hong Kong to examine public perceptions of e-HKD1. Key findings include:

• 90 per cent of respondents acknowledged the importance of privacy in e-HKD transactions
• 65 per cent of professional investors2 are familiar with the concept of e-HKD, compared with 42 per cent of the overall respondents surveyed
• Around one-third of respondents are willing to use e-HKD for digital asset trading, citing “safety” as the key advantage, derived from its digital nature and official backing

HSBC will leverage these results to propose further options for implementing real world use of digital currencies under Project e-HKD+. HSBC has experimented on a sample of public DLT environments (Arbitrum, Ethereum, Linea and Polygon) and private DLT developed by the Bank on Hyperledger Besu. The findings will support the HKMA and the industry in exploring how innovative forms of digital money can add value to the Hong Kong public. Further key learnings will be shared later this year. said “At HSBC, we are leveraging our DEEP financial expertise to pioneer the future of financial innovation. Focusing our efforts on secure, accessible, and transformative technologies, Project e-HKD+ highlights our dedication to digital currencies. As Hong Kong’s largest note-issuing bank, we will continue our efforts in driving financial innovation in Hong Kong and in the world.” said “HSBC is committed to supporting the development of digital currencies in Hong Kong. Our experimental work on ‘Project e-HKD+’, combined with our survey of public perceptions towards e-HKD, aim to support the work of the HKMA in assessing different options for the real-world use of digital currencies.”HSBC has actively participated in various digital asset and currency initiatives in Hong Kong. HSBC is a member of the e-HKD Industry Forum under Project e-HKD+. During the first phase of the e-HKD Pilot Programme, HSBC explored potential retail use cases for digital money. HSBC has also been supporting other HKMA digital asset and currency initiatives, including Project mBridge, Project Ensemble, and the issuance of HKSAR Government’s digital green bonds.Recently, the Bank also launched Tokenised Deposit Service for corporate clients in Hong Kong, marking the city’s first bank-led, blockchain-based settlement service.Source: Hong Kong