Hong Kong, the special administrative region of the People’s Republic of China, continues to work for a digital currency. The Hong Kong Central Bank announced today that it will test the CBDC project on the mortgage market.
The HK$1.8 trillion ($230 billion) mortgage market will benefit greatly from the CBDC test, according to Asian media outlets. While the approval process for mortgage loans in the country takes about 1 month, this time will be reduced by almost half thanks to digital money.
In addition to the long loan process, the housing market in the country continues to be stagnant. According to sources, banks are promising big loan discount offers to entice customers. The government wants to be the lifeblood of the calm market with the trial of the digital HK dollar.
Hong Kong Working With Ripple For CBDC Project
The Hong Kong Monetary Authority, which launched the e-HKD digital currency program in the past months, continues its work. It is known that HKMA is in close contact with Ripple (XRP) for the testing process. Allegedly, Ripple will also closely follow the Central Bank’s mortgage market test.
The use of e-HKD in the housing market is not limited to the flow of funds. The project aims to create an immutable source of truth in the approval process by moving the land registry records to the blockchain. Digital ownership will eliminate the need for separate control and reconciliation processes.
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