The Hong Kong Monetary Authority (HKMA) has published its “Fintech 2025” strategy, in which the digital currencies (CBDC) issued by the central bank are included in the digital financial innovation package for both retail and wholesale.
By revealing fintech strategy through a statement released on Tuesday, CBDCs will reportedly play a role in the city administration’s goal of promoting the widespread adoption of digital finance by 2025.
Regarding your central bank digital currency plans, HKMA announced that it will step up its investigative efforts to ensure Hong Kong’s readiness to bring both retail and wholesale CBDCs to life.
According to the announcement, the HKMA is working with the Bank for International Settlements to investigate a retail digital currency in Hong Kong dollars. This investigation would examine the risks, benefits, and possible use cases of an e-HKD coin.
The HKMA also stated that it will continue to work with the Central Bank of China on the cross-border use of their Digital Currency Electronic Payment (DCEP) project. In fact, in May, Cointelegraph reported that Hong Kong is looking to expand pilot studies for the PBoC’s digital yuan.
In the meantime, HKMA is also part of a consortium of Asian central banks working on a digital currency bridge for multiple central banks. The project builds on a similar collaboration between Hong Kong and Thailand to create cross-border CBDCs based on decentralized ledger technology.
A CBDC’s expanded investigation plan is one of the five focal points of Hong Kong’s fintech strategy. Other areas include ensuring that the city’s banks use digital financial technology while creating a robust data infrastructure to support the planned expansion of the fintech sector.
Hong Kong aims to support its comprehensive financial technology review with government-led guidelines as well, while laying the groundwork for developing a skilled workforce for the new digital finance paradigm.
Given its expanded fintech focus, Hong Kong is also trying to restrict access to cryptocurrencies. The city’s finance and financial services bureau released a proposed policy in May calling on the government to restrict cryptocurrency trading to qualified investors with portfolios worth at least $ 1 million.