Ripple has declared its involvement in the central bank digital currency (CBDC) pilot program for the digital Hong Kong dollar (e-HKD) run by the Hong Kong Monetary Authority (HKMA). Ripple will present its real estate asset tokenization solution and introduce its new CBDC platform as part of the event.
With the use of tokenized assets and a retail version of the e-HKD CBDC, Ripple will demonstrate equity release in partnership with Fubon Bank and other Taiwanese partners. Homeowners can access the equity in their houses through equity release, sometimes referred to as a reverse mortgage. Repayment takes place when the home is sold or the borrower dies.
According to Ripple, tokenization can improve bank operating efficiency by streamlining the equity release process, lowering friction, and speeding up transaction times. The company’s involvement is concentrated on the program’s second rail, which explores use cases, implementation, and design concerns pertaining to the e-HKD CBDC.
The HKMA-led pilot initiative intends to examine CBDCs’ potential and how they might be used in the Hong Kong financial system. The cooperation of Ripple demonstrates its dedication to using digital assets and blockchain technology to develop and enhance conventional financial procedures.
In 2017, Hong Kong began conducting research on central bank digital currency (CBDC). The e-HKD may not have an immediate influence on the present retail payment system, but new use cases for the digital currency could materialize quickly, according to the Hong Kong Monetary Authority (HKMA).
The HKMA’s continued investigation of CBDCs shows its dedication to comprehending and utilizing the advantages of digital currencies in the financial system, laying the groundwork for upcoming advancements and uses in Hong Kong’s digital payment environment.