Hong Kong’s central banking authority has reaffirmed its commitment to exploring digital currency innovation, clarifying that stablecoin and digital Hong Kong dollar applications remain on the table — with several major banks preparing to launch tokenized deposits this year.
According to Foresight News, the Hong Kong Monetary Authority (HKMA) addressed recent speculation surrounding the digital Hong Kong dollar (e-HKD) program. Deputy Chief Executive Li Da-chi clarified that the authority has not suspended retail sector applications for the e-HKD and continues to see strong potential for stablecoin use in payment and financial infrastructure.
Li noted that while digital Hong Kong dollars, stablecoins, and tokenized deposits share common blockchain technology, they differ mainly by their issuers and regulatory classification.
The digital Hong Kong dollar functions as a public currency.
Stablecoins and tokenized deposits are privately issued, with stablecoins typically operating on public blockchains and tokenized deposits favoring private blockchains.
Additionally, Zhou Wenzheng, HKMA’s Assistant Chief Executive (Financial Infrastructure), revealed that seven banks have expressed plans to launch tokenized deposits within the year — marking a significant step toward the integration of digital finance within regulated banking systems.
This development reinforces Hong Kong’s position as a regional leader in financial innovation, bridging traditional finance with Web3 infrastructure.
FAQs
Q1: Has Hong Kong halted its digital currency plans?
No. The HKMA confirmed continued exploration of digital currency applications and stablecoin use cases.
Q2: What are tokenized deposits?
They are bank-issued digital representations of deposits using blockchain technology, offering faster, transparent transactions.
Q3: How do e-HKD and stablecoins differ?
The e-HKD is a central bank-backed digital currency, while stablecoins are issued by private entities and pegged to fiat reserves.
#HongKong #HKMA #Stablecoin Hong Kong continues to position itself as a Web3 hub, advancing digital currency research while encouraging tokenized deposit pilots across major banks.
Disclaimer: Not financial advice. For informational purposes only.