Asia-Pacific Digital Money Roadmap Divergence: Hong Kong Focuses on Wholesale e-HKD, Japan's JPYC Makes a Dazzling Debut

The development paths of digital money in the Asia-Pacific region (APAC) show clear differentiation: Hong Kong has completed the second phase pilot of e-HKD, focusing on wholesale applications; Japan's first compliant yen stablecoin JPYC was launched, with its circulating supply exceeding 50 million yen within 48 hours; meanwhile, Australia clarified regulations on October 29, categorizing stablecoins as financial products, requiring relevant companies to be licensed, and granting a transition period until June 2026. At the same time, the UAE plans to launch a retail CBDC nationwide in the fourth quarter of 2025, highlighting the differentiated strategies between different jurisdictions in terms of monetary sovereignty and financial innovation.

CBDC Infrastructure Development: Hong Kong's Caution and UAE's Aggression

In terms of central bank digital currency (CBDC), Hong Kong and the UAE have taken vastly different timelines and focuses.

• Hong Kong e-HKD Focus on Wholesale: The Hong Kong Monetary Authority (HKMA) released a report on October 28, summarizing the second phase pilot of e-HKD. The report indicates that the digital Hong Kong dollar is more suitable for wholesale financial applications rather than immediate retail deployment. e-HKD shows potential in tokenized asset settlement, programmable trading, and offline payment functions. The HKMA confirmed that wholesale use cases will be prioritized and plans to complete preparations for retail e-HKD in the first half of 2026.
• UAE Retail CBDC Accelerates: In contrast, the UAE has confirmed plans to launch its retail Digital Dirham nationwide in the fourth quarter of 2025, considering it as legal tender. This starkly contrasts with Hong Kong's cautious approach, reflecting differing market conditions and regulatory focuses.

Hong Kong's emphasis on wholesale CBDC aims to support the development of a tokenized ecosystem and enhance cross-border settlement efficiency through projects like Project mBridge.

Regulation and Market Vitality of Stablecoins: A Comparison between Japan and South Korea

The stablecoin market in the Asia-Pacific region has shown a high level of activity and regulatory attention.

• Milestone of Japan's JPYC: Japan's first yen-pegged stablecoin JPYC, compliant with the revised Payment Services Act, was officially launched on October 27. By October 29, its Circulating Supply had surpassed 50 million yen, primarily distributed across blockchain networks such as Polygon, Avalanche, and Ethereum. Despite the tremendous success, JPYC's representative director Noritaka Okabe still warned of operational risks such as liquidity on decentralized exchanges.
• South Korea's risk warning: The Bank of Korea has taken a contradictory stance. Although it suspended the digital won CBDC project in June 2025, it still issued a report warning of the “decoupling risk” associated with private stablecoins pegged to the won. The central bank recommends that the issuance of stablecoins be led by traditional banks to provide sufficient institutional trust mechanisms, and the first regulated won stablecoins are expected to enter the market between the end of 2025 and early 2026.

Regulatory Clarity in Australia: Stablecoins as Financial Products

Australia's regulatory actions provide legal certainty for stablecoin operations in the Pacific region.

• Classified as Financial Products: The Australian Securities and Investments Commission (ASIC) released guidance on October 29, clarifying that under existing laws, stablecoins, Wrapped Tokens, tokenized securities, and digital asset wallets are all considered financial products.
• Licensing requirements and transition period: Companies providing such products are now required to obtain local financial service licenses. ASIC has provided an industry-wide “no action” exemption until June 30, 2026, giving businesses time to assess requirements and obtain licenses.

This framework complements the legislative proposal put forward by the Australian Treasury, incorporating cryptocurrency exchanges and service providers into the financial services licensing requirements.

Summary of Regional Models and Market Impact

The diversity of digital currency strategies in the Asia-Pacific region reflects the different considerations of countries regarding financial innovation, monetary sovereignty, and payment infrastructure.

This differentiation will profoundly impact the efficiency of cross-border payments, financial inclusiveness, and the evolution of regional monetary systems.

Conclusion

The competition of digital money in the Asia-Pacific region is accelerating, and the strategic choices of various countries/regions will directly determine their future position in global digital finance. Hong Kong's emphasis on wholesale CBDC and the rapid rise of private stablecoins in Japan together showcase Asia's innovative vitality. At the same time, Australia's and South Korea's clear regulations on stablecoins and risk warnings provide a necessary framework for compliance operations and consumer protection in the market. Investors and market participants need to closely monitor these changes in regulatory and technical frameworks to adapt to the continuously reshaping landscape of digital money in the Asia-Pacific region.