APAC’s Digital Currency Strategies Diverge—CBDC vs Stablecoin

Asian and Pacific(APAC) jurisdictions chart divergent digital currency development paths. Some are advancing central bank digital currencies while others embrace private stablecoins.

Hong Kong completed its e-HKD pilot program on October 28, while Japan’s JPYC stablecoin surpassed 50 million yen within 48 hours. South Korea warned about depegging risks, and Australia clarified stablecoin regulatory requirements on October 29.

Hong Kong and UAE Advance CBDC Infrastructure

The Hong Kong Monetary Authority published its e-HKD Pilot Program Phase 2 Report on October 28. The report concluded an extensive evaluation of 11 pilot projects involving major financial institutions. HSBC, Hang Seng Bank, and DBS Hong Kong participated in these trials.

The report indicated that the digital Hong Kong dollar suits wholesale financial applications rather than immediate retail deployment.

According to HKMA findings, the e-HKD showed promising capabilities in three areas. These include settlement of tokenized assets, programmability for automated transactions, and offline payment functionality.

The authority emphasized that the e-HKD is appropriate for large-value transactions as a central bank-issued instrument free from credit risk. The HKMA confirmed it will complete preparatory work for potential retail e-HKD applications by the first half of 2026 and prioritize wholesale use cases soon.

The Hong Kong Monetary Authority (HKMA) released a report on Phase 2 of its e-HKD program, publishing the results of multiple industry initiatives, including a key cross-chain settlement solution powered by Chainlink with ANZ, China AMC, and Fidelity International.… pic.twitter.com/uMGYsjW8TB

— Chainlink (@chainlink) October 28, 2025

The timing aligns with broader regional CBDC initiatives. The United Arab Emirates confirmed plans to launch its Digital Dirham for retail use in the fourth quarter of 2025. It will be treated as legal tender alongside physical currency. Hong Kong’s measured approach contrasts with this accelerated timeline, reflecting different regulatory priorities and market conditions.

Japan and South Korea Navigate Stablecoin Terrain

Japan marked a significant milestone on October 27 with the official launch of JPYC. This is the country’s first regulated yen-pegged stablecoin that is compliant with the revised Payment Services Act. By October 29, the token had surpassed 50 million yen in circulation.

It is distributed across three blockchain networks. Polygon hosts approximately 21.34 million yen and 1,620 holders. Avalanche has 17.03 million yen and 628 holders. Ethereum accounts for 16 million yen and 108 holders.

JPYC has launched the first yen‑pegged stablecoin, backed by Japanese government bonds and domestic savings. The company plans to issue up to 10 trillion yen over three years and waive transaction fees to boost usage.