Hong Kong May Use Blockchain as Mortgage Solutions

Hong Kong is one in all the foremost necessary monetary centers of the world, but with restricted area and high demand, property in metropolis has continuously been briefly offer. Simplifying home ownership in Hong Kong is thus a major concern for the Hong Kong government, which has undertaken variety of measures within the previous few years to create home ownership each cheap and simple.

The Nikkei Asian Review reported that as recently as early November, the Hong Kong government raised stamp duty to cool down the boiling Hong Kong housing market. This live of the government was in the main aimed toward outsiders, whom had been driving up home costs. Currently the govt is flirt with Blockchain, the technology behind Bitcoin, to create it easier for metropolis residents to possess access to mortgages still.

Hong Kong

A proof of idea report printed by the Hong Kong financial Authority and the Hong Kong bailiwick and Technology analysis Institute, covers problems associated with Distributed Ledger Technology, AN example of that is Blockchain, and aims to produce the FinTech trade in city with a study of the advantages, risks, key options and potential of the technology.

The report appearance at the potential of Distributed Ledger Technology across mortgage loan applications, trade finance and digital identity management. Of specific interest is the mortgage loan application method, where the Distributed Ledger Technology will accelerate things and take away complexities.

The report states:

“Banks want quick and correct info concerning the calculable worth of a property in order to create sensible credit choices. However, communication between banks, law corporations and valuation corporations remains a mostly paper-based and erring method. A Distributed Ledger Technology network that connects these participants may thus be useful for them, for instance by facultative them to with confidence share copies of digitized valuation reports and legal documents or maybe transfer titles, therefore reducing the time and price of transactions.”

At the instant to buy property, Party A generally sells to Party B, upon that a procurement and buy agreement is signed. Party B obtains a mortgage from a bank, which transfers funds to the seller’s bank on a fixed date.

Thereafter the change of possession of the title is submitted to the land written account. In fact, though there are additional parties concerned, as property surveyors are generally employed to assess the worth of the property and lawyers perhaps needed to draw up legal agreements. Within the future the land registry info, that holds all the relevant info concerning the property, could become the key.


A Distributed Ledger Technology can enable varied parties to access the information and the seller’s digital signature would be needed to settle the sale. As info are going to be keep on distributed nodes, the dealing is initiated by the bank and sent to any or all different nodes within the Distributed Ledger Technology, and validation will happen on the Blockchain.

The report stated:

“As every node holds an area copy of the ledger that contains a whole set of the historical transactional information records of that property, the node is ready to appear into its own chain and record history to visualize the validity of the dealing.”

The Hong Kong report highlights variety of advantages to the Distributed Ledger Technology system. It acknowledges that Distributed Ledger Technology is tamper proof. They conjointly acknowledge that it’s changeless and clear and there’s a chance of the preparation of sensible contracts.


The report stated:

“A Distributed Ledger Technology system clearly has the potential to bring new opportunities and efficiencies to the banking and payment industries, supported the key strengths launched during this chapter. These embrace the aptitude of creating trust in a very distributed system, potency in broadcasting info in a very speedy and secure approach, the flexibility to realize complete traceability of records and transactions, the chance of lowering operation prices and the potential for top resiliency.”

However, the million-dollar question continues to be governance and regulation. It’s expected that ensuing iteration of the report can concentrate on the legal aspects of Blockchain and can give updates of the proof of ideas concerned.


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