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- 1 Ripple and Fubon Bank have become partners for the CBDC pilot program.
- 2 They will explore the use cases of CBDC, focusing on tokenized real estate assets in Hong Kong.
The head of Web3 and crypto at Ripple, Emi Yoshikawa, says that the company has done a long term collaboration with Fubon Bank. It is a Taiwan based Fintech major. This collaboration is initiated by Hong Kong Monetary Authority’s (HKMA) using e-HKD as strength within this CBDC pilot program.
The CBDC pilot program was launched with the aim to improve the speed and efficiency of payments using its own central bank digital currency. It is basically based on three parameters.
The 3 Parameters Of Pilot Program
The first parameter is using the technology and legal base for implementation of CBDC. The second parameter is focused on research and pilots and the third parameter is introducing e-HKD.
The HKMA announced the launch of a cyber Hong Kong dollar pilot project on May 18.This program is an experiment with the development and adoption of the blockchain based version of the Hong Kong Dollar.
With this the HKMA also announces the use of e-HKD in six categories- offline payments, tokenization, this will include the tokenized deposits and settlements of tokenized assets, settlements of web3 transactions, programmable payments.
Ripple and Fubon will work in assembly for tokenization of real estate and equity release. The combination of use cases of e-HKD and the role of XRP make Ripple excited for the partnership. Fubon is one of the biggest financial holding companies in Taiwan.
By 2030, the real world asset tokenization is predicted to be a multi-trillion-dollar industry. It is used with financial services and government sectors. Ripple will use it by combining e-HKD, tokenized real estate and lending protocols. This will run on a private and secure ledger. They are built with the XRPL technology.
CBDC is a virtual currency created by the central bank. The central bank provides the option seeing the popularity of cryptocurrency and stablecoins. This will give the unique advantages of central money, in settlement, liquidity and integrity.
It also limits the risks of frauds and delays. The data will be under the governance. It will improve the privacy in cross border payments. HKMA said that they will create a CBDC expert group. They will provide the collaboration between the government, organizations, and industry.
Ripples Main Focus Is Development of Technology
Ripple and Fubon Bank together will develop projects for other industries too. The vice president of Ripple says that their main focus is development in the Asia Pacific region. He also stated that the Asia Pacific region has many progressive regulators like HKMA.
It seems that HKMA is interested in taking advantage of blockchain technology. It is an honor participating in HKMAs e-HKD Pilot Programme. This raises the hope that the real estate asset tokenization seems possible for the people. They are confident that it is the first company to bring leverage of real estate equity asset release.
This collaboration of Ripple with Fubon bank will result in maximizing readiness for a potential e-HKD. It will also strengthen the legal control over the currency by participation of central banks.unique advantages of central money in settlement, liquidity and integrity.
It also limits the risks of frauds and delays. The data will be under the governance. It will improve the privacy in cross border payments. HKMA said that they will create a CBDC expert group. They will provide the collaboration between the government, organizations, and industry.
Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
