The Hong Kong Monetary Authority initiated Phase 1 of its e-HKD pilot to evaluate the operational readiness of a retail central bank digital currency. The pilot focused on near-instant transfers of digital currency between consumers and merchants and explored programmability as a mechanism for automating reward and loyalty programs.

The pilot needed to demonstrate that a retail CBDC could operate at the speed and simplicity required for everyday consumer and merchant use, while also validating that smart contract-based programmability could automate complex reward workflows without additional operational overhead.

Kaleido provided the underlying technology platform and essential development environment for the pilot. The platform powered mobile wallets enabling near-instant transfers of e-HKD between customers and merchants within the HKUST campus environment. Smart contracts were used to automate and manage reward payments and promotions based on predefined conditions, testing the feasibility of programmable money in a live retail setting.