The Hong Kong Monetary Authority (HKMA) has announced that they will begin laying the foundation for the launch of their Central Bank Digital Currency (CBDC). Similar to other entities worldwide, the HKMA is conducting CBDC trials to meet the increasing need for digitized payments. The authority is currently exploring various use cases for their digital Hong Kong dollar.
In May, Ripple Labs announced that they had been selected to assist the HKMA in developing a tokenization solution to record e-HKD real estate transactions on a “private and secure ledger.”
Ripple Labs’ CBDC platform is separate from the public XRP Ledger (XRPL). It is designed to help alleviate central banks’ concerns about using public blockchains.
According to Ripple’s CEO, Brooks Entwistle, CBDCs are the most prominent use case for the utility of blockchain technology.