Visa Collaborates with HSBC and Hang Seng Bank for Successful CBDC Pilot in Hong Kong

Visa Collaborates with HSBC and Hang Seng Bank for Successful CBDC Pilot in Hong Kong

Crypto News – Global payment giant Visa has unveiled the results of its collaboration with two major banks, HSBC and Hang Seng Bank, in a test simulation of tokenized deposits for the central bank digital currency (CBDC) of Hong Kong.

In a recent statement, Visa highlighted the benefits of the CBDC pilot program for both the company and the nation. The Hong Kong Monetary Authority’s (HKMA) pilot program presents Visa with a unique opportunity to capitalize on its strengths, drive payment innovation, and explore new avenues of money flow in collaboration with its partners.

This development follows a recent report by BeInCrypto indicating Hong Kong’s interest in developing a CBDC for retail usage. Authorities have been contemplating the preparedness for implementation when the need arises.

Visa sees the CBDC pilot as a means to showcase the applications of digital currency and a way to revolutionize the national payment system, offering reference value not only for a potential digital Hong Kong dollar but also for shaping the future development of the payment ecosystem.

Visa also discussed the significance of tokenization technology in bridging the gap between traditional banks and cryptocurrencies. This technology is expected to bring forth new opportunities in the financial industry in the years to come, garnering increased attention due to its potential to transform interoperability between banks and digital assets.

Hong Kong has been actively exploring the potential uses and benefits of CBDCs in the country. In a previous report on September 13, BeInCrypto revealed that Hong Kong, in collaboration with the Bank for International Settlements (BIS) and Israel’s central bank, conducted experiments involving retail central bank digital currency (rCBDC) to enhance digital payments as a public service. The report emphasized that careful design of the CBDC’s structure could mitigate cybersecurity risks associated with the use of rCBDCs.