In an exciting development, DBS Hong Kong is leveraging an Environmental, Social, and Governance (ESG) reward platform to incentivise sustainable behaviours to the general public through Phase 2 of the e-HKD Pilot Programme led by HKMA. Corporates can create ESG campaigns and set redemption guidelines to foster a green corporate culture and promote participation. Users who complete green actions will earn ESG reward points, which can be redeemed for a hypothetical e-HKD to purchase green products and services at designated SME merchants.

This use case promotes a low-carbon lifestyle and incentivises ESG efforts for corporates to achieve their sustainability goals and to adhere to ESG reporting requirements. It helps SME merchants in increasing business traffic, engaging in the program, and re-evaluating eco-friendly business operations during challenging economic environments. It also motivates the general public to take actions in support of environmental protection.

Boris Chan, Managing Director and Head of Global Transaction Services, DBS Bank Hong Kong, said, “DBS Hong Kong welcomes the launch of Project e-HKD+ led by the Hong Kong Monetary Authority. The expanded project scope of Project e-HKD+ allows DBS Hong Kong to explore innovative applications for digital money while supporting the sustainable development of the tokenisation market in Hong Kong. Leveraging the e-HKD with potential smart contract functionality will ensure transparency, scalability, security and settlement efficiencies for corporates, merchants and consumers. DBS Hong Kong is excited to be at the forefront of this transformation and driving substantial advancements across the financial sector.”

DBS’s Ethereum Virtual Machine (EVM) compatible blockchain and its suite of integrated services enables scalable and interoperable rewards programs. In particular, the use of smart contracts to orchestrate rewards lifecycle management and automate settlement using the underlying e-HKD will enable seamless transactions and reconciliation among corporates, merchants and end users.

The HKMA has successfully completed Phase 1 of the e-HKD Pilot Programme in October 2023. Building on this success, the next phase of the e-HKD Pilot Programme will further explore the programmability, tokenisation, and atomic settlement. By joining Phase 2 of the e-HKD Pilot Programme, DBS Hong Kong is poised to play a pivotal role in shaping the future of digital money and positioning Hong Kong as an innovative financial hub.