HKMA includes CBDC in fintech strategy
08 Jun 2021
Retail and wholesale central bank digital currencies (CBDC) are included in the Hong Kong Monetary Authority’s (HKMA) “Fintech 2025” strategy published on Tuesday.
CBDCs are due to be part of Hong Kong’s objective of promoting comprehensive digital finance adoption by 2025.
Research is to be stepped up into central bank digital currencies, to make sure Hong Kong is prepared to float both retail and wholesale CBDCs, says the report.
As per Tuesday’s announcement, the HKMA is collaborating with the Bank for International Settlement to research a retail digital Hong Kong dollar currency, reports Cointelegraph.
The risks, advantages and possible use cases of a e-HKD currency will be analysed within the research.
In addition, the HKMA said it will continue to work with China’s central bank on cross-border use of its digital currency electronic payment (DCEP) project.
The Hong Kong Monetary Authority also belongs to a consortium of Asian central banks focusing on a multiple central bank digital currency bridge.
The proposed additional research is one of five main points in Hong Kong’s fintech strategy.
Others include ensuring banks wholly embrace fintech whilst at the same time establishing a strong data infrastructure to support the planned growth.
Furthermore, Hong Kong is planning to back its extensive fintech overhaul with government-led policies, whilst laying the foundations to develop skilled employees for the new digital finance concept.
Chief executive of the HKMA, Eddie Yue stated: “Fintech is, without doubt, a key growth engine for the financial industry in the post-pandemic era, and now is the right time to double down on our efforts to grasp the opportunities. ‘Fintech 2025’ sets out our vision in this regard. I urge all stakeholders to join forces with the HKMA. Together, we can take our city’s fintech ecosystem to new heights.”