Visa Completes Phase 1 of CBDC Trial in Hong Kong
Visa, HSBC, and Bank Collaborate on CBDC Trial
Visa, in collaboration with HSBC and Bank, has successfully completed the first phase of a Central Bank Digital Currency (CBDC) trial in Hong Kong. This trial, supported by Beijing’s central government, achieved “near real-time” transfers using tokenized electronic Hong Kong Dollar (e-HKD) deposits while ensuring the privacy of non-bank users’ information. The pilot, part of Visa’s “Digital Hong Kong Dollar” initiative by the Hong Kong Monetary Authority (HKMA), operated 24/7.
Improved Efficiency and Transparency in Interbank Payments
The trial focused on the utility of tokenized deposits in interbank business-to-business payments, specifically property payments and settlements between institutions and merchants. The results demonstrated faster transaction speeds, enhanced risk management, improved control, and increased transparency. This groundbreaking initiative is globally recognized as the first to explore the atomicity and interoperability of such transactions, marking a significant shift in the finance industry.
Visa Explores Further Applications of e-HKD
Building on the success of the trial, Visa is now exploring additional use cases for e-HKD. These include tokenized asset markets, programmable real estate transactions finance, and digital cross-border payments. However, despite these advancements, cybersecurity risks remain a challenge that needs to be addressed before full implementation.
Hashkey Introduces HashKey EcoPoints (HSK)
In other news, Hashkey plans to introduce HashKey EcoPoints (HSK) in 2024. These eco-points will serve as incentives for ecosystem users and provide early access to future token subscriptions. It’s important to note that this initiative is not intended for fundraising purposes. Additionally, Hashkey intends to buy back HSK tokens using profits from related services.
Crackdown on Crypto Money-Laundering
Meanwhile, China’s Central Government has increased its crackdown on crypto activities after nineteen Chinese nationals received prison terms for their involvement in a $308 million crypto money-laundering scheme through peer-to-peer transactions. These measures aim to strengthen regulations and ensure the integrity of the financial system.
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