Visa has completed pilot testing of tokenized deposits using Hong Kong’s central bank digital currency (CBDC) with the participation of local commercial banks. The initiative has demonstrated the potential of using innovative technologies in interbank B2B transactions.
Payment giant Visa has reported the successful testing of tokenized deposits in Hong Kong Digital Dollars (e-HKD). The company has been working closely with two major commercial banks in Hong Kong for the initiative, namely HSBC and Hang Seng Bank.
Pilot tests have proven that tokenized deposits can greatly speed up real-time interbank transfers. According to Paulina Leong, Managing Director of Visa in Hong Kong and Macau, tokenization will bring new opportunities for the industry in the next few years, and the company is ready to promote innovation in payments and will continue to test new forms of financial transfers.
Visa representatives also note that participation in the pilot project of the Hong Kong Monetary Authority (HKMA) provided the company with an opportunity to demonstrate its potential within the framework of ensuring secure and fast payments.
Visa’s participation in testing the e-HKD functionality has also proved that tokenized deposits can:
- become an alternative means of conducting large and urgent transactions;
- provide increased security for money transfers;
- reduce the risks associated with settling transactions;
- revolutionize B2B payments by improving their speed.
Visa officials also point out that their platform is able to function on a 24/7 basis, and tokenization will eliminate the dependence on the working mode of traditional payment systems.
The pilot project of the Hong Kong Digital Dollar has moved to a new stage, and Visa is actively exploring the possibilities of blockchain payments. Last year, the payment giant announced cooperation with JPMorgan to create a unified system of cross-border blockchain payments.