Hong Kong to reportedly test retail digital currency for mortgage pricing

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.