Tokenization, CBDCs poised to increase Hong Kong’s GDP by $20.4 billion: study

A recent study suggests that tokenization and the implementation of central bank digital currencies (CBDCs) have the potential to increase Hong Kong’s gross domestic product (GDP) by $20.4 billion. The study conducted a pilot project involving the tokenization of real-world assets, such as real estate, to explore the feasibility of digital assets in improving the region’s digital economy. If successful, the combination of stablecoins, tokenized deposits, and the introduction of an e-HKD could contribute to a significant spike in Hong Kong’s GDP. However, the study also highlights the need for necessary infrastructure and regulatory support for tokenization to realize these projections. In addition to tokenization, other areas expected to drive economic growth include unlocking liquidity in assets, full-scale support for Web3 initiatives, and exploring cross-border transactions. Hong Kong is already making progress with its CBDC plans, completing the first phase of its e-HKD pilot and preparing for the next phase focusing on programmability, atomic settlement, and tokenization. Despite the potential benefits of tokenization, challenges such as legal issues and the integration of off-chain registries need to be addressed to fully realize the benefits of tokenizing real-world assets.