The post Hong Kong to reportedly test retail digital currency for mortgage pricing appeared on BitcoinEthereumNews.com.

Hong Kong is set to start another trial with retail e-HKD, this time for pricing and distributing mortgages. The Hong Kong Monetary Authority (HKMA) is gearing up to initiate another round of testing of its digital currency dubbed e-HKD, the South China Morning Post reports. This time, HKMA reportedly wants to pilot e-HKD with select participants in such mechanisms as pricing and distribution of mortgages in the region. The report says, citing HKMA, that with e-HKD, Hong Kong residents could potentially borrow from more than one lender at preferential rates and enjoy faster approval and disbursement. It’s unclear though whether the region will set up a new regulatory body to oversee any activity related to mortgages and lending practices involving e-HKD. Several financial institutions in Hong Kong, including Boston Consulting Group (BCG) and ZA Bank, have already expressed interest in this use case during their initial pilot programs. BCG estimates suggest that the utilization of e-HKD could extend to tokenized assets, digitizing assets valued at approximately $4.6 trillion, primarily residential property. The pilot acceleration coincides with China’s recent launch of its first pilot outside the mainland, introducing the digital yuan, also known as e-CNY, in Hong Kong. The digital yuan is currently undergoing trials for cross-boundary payments, enabling Hong Kong residents to top up digital wallets with up to 10,000 CNY (approximately $1,385) through 17 retail banks in Hong Kong, including Standard Chartered Bank, ZA Bank, and DBS Bank. Source: https://crypto.news/hong-kong-to-reportedly-test-retail-digital-currency-for-mortgage-pricing/

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Filed under: News - @ May 27, 2024 3:16 pm