The Hong Kong Monetary Authority (HKMA) has released the second phase report of its Digital Hong Kong Dollar pilot project, revealing that both the digital currency and tokenized deposits can facilitate cost-effective, programmable, and robust transactions. However, the report notes no clear public preference between the two. Commercial banks show a preference for tokenized deposits due to their compatibility with existing regulatory frameworks and infrastructure. The HKMA has not set a timeline for the full rollout of the digital Hong Kong Dollar but plans to complete preliminary policy, legal, and technical preparations by the first half of next year. Additionally, the authority will establish a common tokenization standard for the industry, laying the groundwork for future retail applications.