HONG KONG : Hong Kong 's central bank plans to test the use of its digital currency under a pilot project in its HK$1.8 trillion mortgage market, with an aim to slash a month-long loan approval process by half, according to the pilot participants.
Here's a look at how the digital currency, e-HK dollar , can be potentially used in the mortgage business:The Hong Kong Monetary Authority kicked off the e-HKD pilot programme in May under which 16 firms were selected to examine the digital currency's use across 14 projects. Currently information on the title deed is first collected from the customer and then checked against a separate property title deed register.
Under the proposed use of the e-HKD in the mortgage market, when conditions such as loan-to-value ratio and the property value are met on the bank's digital platform, the e-HKD loan will be automatically released as the title deed would already be secured on the blockchain, the participants said.WHAT ARE THE BENEFITS OF A DIGITAL OWNERSHIP RECORD?