A Hong Kong government official has refuted claims that the Hong Kong Monetary Authority (HKMA) is planning to launch a central bank digital currency (CBDC). Acting Secretary for Financial Services and the Treasury, Joseph Chan, was speaking at a council meeting with legislators in Hong Kong.
Hong Kong already has a stable and efficient finance system
He noted that the HKMA had conducted a research and established that the CBDC will be as effective as it is in other areas without a digital currency. Chan says the country already has a stable and efficient payment system. The research was conducted by the Committee on Payments and Market Infrastructures (CPMI), which has members drawn from the People’s Bank of China (PBoC) and HKMA.
Additionally, the report claims that the benefits of CBDC would be overshadowed by the efficient private retail payment products that are already on the market. This means CBDC requires more studies plus proof-of-concept work to establish its feasibility as a payment method.
Protecting domestic investors
Chan said that the Hong Kong government is closely following international events and developments with regard to cryptocurrencies and Initial Coin Offerings (ICOs) for the purposes of protecting the interests of investors that wish to put their money in the sector.
Earlier in May, the Hong Kong Financial Services and Treasury (FSTB) released a report that ruled out cryptocurrency as a possible window for financing terrorist activities and money laundering.
The finding came at a time when the general opinion about cryptocurrencies and blockchain has been changing. It is not long since Chinese president Xi Jingping said that blockchain is part of the revolution of the 21st century. He noted that since the start of the century, there has been a period of intense activity with regard to global technological and scientific innovation. “A new round of scientific and technological revolution and industrial change is reconstructing the global innovation map and reshaping the global economic structure”, Xi said.
Hong Kong has been voted as one of the countries that have friendly policies towards cryptocurrencies. The country is host to several cryptocurrency businesses. It joins other countries like Singapore and Malta that have crypto-friendly ecosystems.