• Standard Chartered Bank (Hong Kong) has successfully conducted an extensive offline payments trial for Hong Kong’s central bank digital currency (CBDC), e-HKD, focusing on ensuring inclusiveness, security, and reliability of transactions, particularly in regions with unreliable internet access.
• Over several months, the trial included the participation of 200 individuals and over ten merchants, with participants making transactions using hypothetical e-HKD at select retailers, utilizing both smart cards and smartphone NFC functions, across various sectors.

In a significant step towards digital currency innovation, Standard Chartered Bank (Hong Kong) has completed a comprehensive offline payments trial for the e-HKD, Hong Kong’s central bank digital currency. This groundbreaking trial, spanning several months, included over 200 individual participants and more than ten merchants, marking a critical evaluation of the currency’s inclusiveness, security, and reliability, especially in regions with unstable internet connectivity.

Engaging Commerce Across Sectors

Participants in the trial were allocated hypothetical e-HKD, which they were able to spend across a diverse range of selected retailers, employing both smart cards and NFC (Near Field Communication) functions on smartphones for transactions. The trial was meticulously planned to cover a variety of sectors, including public transportation, university campus merchants at the University of Hong Kong, various restaurants, and an office-flea market festival. This strategic selection of environments allowed Standard Chartered to thoroughly assess the viability and effectiveness of offline e-HKD payments in scenarios characterized by small-value, but high-volume transactions.

The Bank for International Settlements’ (BIS) Innovation Hub, recognizing the importance of this innovation, recently published a book dedicated to offline CBDC, further solidifying the trial’s relevance in today’s fast-evolving digital currency landscape.

A Continued Commitment to Digital Currency Innovation

Earlier this year, the Hong Kong Monetary Authority (HKMA) selected Standard Chartered as one of 16 commercial banks to participate in eHKD pilot projects, reflecting the bank’s prominent role in advancing digital currency innovation. The bank’s involvement in digital currency experimentation is not a new endeavor. Standard Chartered has actively explored various use cases for digital assets since 2018, and this trial is a testament to their commitment to shaping the future of financial services.

Stephen Man, Head of Consumer, Private and Business Banking at Standard Chartered (Hong Kong), emphasized the bank’s dedication, stating,

“As a note-issuing bank with over 160 years of history in Hong Kong, we are committed to supporting the FinTech initiatives of the HKMA.”

Through initiatives like this offline e-HKD trial, Standard Chartered continues to demonstrate its pivotal role in pioneering the digital currency revolution, ensuring that advancements in this field are inclusive, secure, and reliable, even in the most challenging of environments.