Hong Kong is advancing towards the launch of a central bank digital currency (CBDC) as Visa, HSBC, and Hang Seng Bank reveal the successful results of phase 1 testing. Meanwhile, HashKey plans to introduce an exchange token in 2024, and a $308M crypto-laundering scheme has been thwarted.
The digital Hong Kong dollar (e-HKD) has achieved “near real-time” settlement in its pilot test. The digital currency testing was functional round the clock, outperforming traditional financial systems.
Visa plans to explore the use of e-HKD in tokenized asset markets and programmable finance for automating real estate transactions. However, the full launch of the Hong Kong digital dollar is still uncertain, with no definitive timelines provided.
HashKey plans to launch its exchange token, “HashKey EcoPoints,” in 2024. The token, minted on Ethereum, will be used to settle trading fees and provide early access to token subscriptions and product upgrades, among other utilities.
In a separate development, 19 Chinese nationals have been convicted for their role in a $308M money-laundering scheme involving cryptocurrencies. The operation was active between November 2020 and April 2021, with the principal conductors laundering Bitcoin and Tether for proceeds related to online gambling and wire fraud.
The ongoing crackdown on crypto-related activities in China has led to heightened enforcement actions, which have occasionally resulted in collateral damage for foreign investors using Chinese-based crypto services.
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