Visa (NYSE:), in collaboration with HSBC and Bank, has completed the first phase of a Central Bank Digital Currency (CBDC) trial in Hong Kong. The trial, backed by Beijing’s central government, achieved “near real-time” transfers using tokenized electronic Hong Kong Dollar (e-HKD) deposits while preserving non-bank users’ information privacy. The pilot functioned 24/7 and was part of Visa’s “Digital Hong Kong Dollar” initiative by the Hong Kong Monetary Authority (HKMA).
The test focused on the utility of tokenized deposits in interbank business-to-business payments, particularly property payments and settlements between institutions and merchants. The outcomes highlighted faster transaction speeds, superior risk management, enhanced control, and increased transparency. This initiative is globally recognized as the first to investigate the atomicity and interoperability of such transactions, leading to a paradigm shift in finance.
Visa is now further investigating the use of e-HKD in tokenized asset markets, programmable real estate transactions finance, and digital cross-border payments. Despite these advancements, cybersecurity risks still pose challenges for the full launch.
In related news, Hashkey plans to introduce HashKey EcoPoints (HSK) in 2024 for ecosystem users’ incentives and early access to future token subscriptions. However, this is not intended for fundraising purposes. Hashkey also intends to buy back HSK tokens with profits from related services.
Meanwhile, nineteen Chinese nationals received prison terms for their participation in a $308 million crypto money-laundering scheme using peer-to-peer transactions. This has led China’s Central Government to increase its crackdown on crypto activities.
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