Global payment company Visa has revealed the outcomes of tokenized deposits for the central bank digital currency (CBDC) of Hong Kong through a collaborative effort with two major banks.
It was stated that HSBC and Hang Seng Bank participated in the test simulation.
Hong Kong’s CBDC Pilot Benefits Economy
In a recent statement, Visa highlights the advantages that the CBDC pilot program in Hong Kong offers to both the company and the nation.
“The HKMA’s pilot program provides Visa with a great opportunity to continue to leverage our strengths, promote payment innovation, and test new forms of money flow in collaboration with partners.”
This comes after BeInCrypto recently reported that Hong Kong contemplated the development of its CBDC for retail usage. On June 9, an external report suggested that authorities aimed to have one prepared for implementation when the need arises.
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Visa believes the CBDC pilot shows digital dollar applications and a way to revolutionize the national payment system.
“Not only providing reference value for the hypothetical digital Hong Kong dollar but also contributing to shaping the future development of the payment ecosystem.”
Hong Kong Explores Digital Asset Boundaries
Furthermore, Visa discussed tokenization technology as a significant factor that will bring together banks and cryptocurrency in the coming years.
“Tokenization technology is expected to bring new opportunities to the industry in the coming years, with increasing attention from the financial industry due to the potential transformation of interoperability between banks and digital assets.”
Hong Kong has been actively studying CBDC uses and benefits in the country.
On September 13, BeInCrypto reported that Hong Kong, in partnership with the Bank for International Settlements (BIS) and Israel’s central bank, conducted experiments with retail central bank digital currency (rCBDC) to improve digital payments as a public service.
The report indicated that a careful design of the CBDC’s structure could eliminate cybersecurity risks when using rCBDCs.
Learn more: Digital Rupee (e-Rupee): A Comprehensive Guide to India’s CBDC
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