Cryptocurrency News

Fintech strategy in Hong Kong involves central bank digital currency

The Hong Kong Monetary Authority (HKMA) has published its “Fintech 2025” strategy with central bank digital currencies (CBDCs) both retail and wholesale included in the digital finance innovation package.

fintech strategy unveiled via a via release Released on Tuesday, the CBDC will reportedly play a role in the city administration’s goal of promoting widespread digital finance adoption by 2025.

Regarding its plans for central bank digital currencies, HKMA revealed that it will increase its research efforts to ensure Hong Kong’s readiness to float both retail and wholesale CBDCs.

Per the announcement, the HKMA is collaborating with the Bank for International Settlement to research a retail digital Hong Kong dollar currency. This research is reportedly investigating the risks, benefits and potential use cases of the e-HKD currency.

The HKMA also said that it would continue to work with China’s central bank. cross border use The subsequent Digital Currency Electronic Payment (DCEP) project. Indeed, Cointelegraph reported back in May that Hong Kong was looking into Expand Pilot Study for PBOC’s Digital Yuan.

Meanwhile, the HKMA is also part of a consortium of Asian central banks that operates a . working on Multiple central bank digital currency bridge. The project builds on a similar collaboration between Hong Kong and Thailand to build a cross-border CBDC based on decentralized ledger technology.

The expanded CBDC research plan is one of the five key focus points in Hong Kong’s fintech strategy. Other areas include ensuring that city banks adopt digital finance technology while building a robust data infrastructure to support the planned fintech expansion.

Hong Kong also wants to support its comprehensive fintech overhaul with government-led policies, as well as lay the groundwork for developing a skilled workforce for the new digital finance paradigm.

Hong Kong is also moving to restrict access to cryptocurrencies, amid the backdrop of its expanding fintech focus. The city’s Financial Services and Treasury Bureau issued a policy proposal in May asking the government ban crypto trading For eligible investors with a portfolio of at least $1 million.