The Hong Kong Monetary Authority (HKMA) has outlined its new technological development roadmap dubbed the ‘Fintech 2025’. It aims to develop Fintech and digital currency, Hong Kong’s version of Central Bank digital currency (e-HKD).
Per the published report, the apex monetary authority seeks to drive the financial sector to adopt technology in its entirety by 2025 ultimately. The areas it looks to overhaul, Central Bank Digital Currency (CBDC) pursuit or e-HKD, are vital aspects. Other strategic sectors include planning for all banks to go Fintech, creating a futuristic data infrastructure, growing the tech-savvy workforce and the rollout of funding, and the right policies to aid growth.
Hong Kong is one of the Asian cities that have already researching to develop a government-backed digital currency. Per the Fintech strategy, the HKMA said it would “strengthen its research work to increase Hong Kong’s readiness in issuing CBDCs at both wholesale and retail levels.”
The development of the Digital Hong Kong Dollar has been progressing with collaborations from the Bank for International Settlements (BIS) and the People’s Bank of China (PBoC). The apex bank also has a functional pact with the Bank of Thailand per the CBDC development. These collaborations, the HKMA says it will continue to cooperate.
“In addition to the continued effort on wholesale CBDCs, the HKMA has been working with the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre to research retail CBDCs and will begin a study on e-HKD to understand its use cases, benefits, and related risks,” the HKMA said in the statement, adding “The HKMA will also continue to collaborate with the People’s Bank of China in supporting the technical testing of e-CNY in Hong Kong to provide a convenient means of cross-boundary payments for both domestic and mainland residents.”
Many countries are making advances in positioning their fiat currency in readiness to absorb CBDCs. The United States of America, China, Sweden, and the United Kingdom are the latest names with active digital fiat currency developments. At the same time, these countries take a multi-year route to debut their cryptocurrencies competitors. Meanwhile, El Salvador has become the first country to adopt Bitcoin (BTC) as its official legal tender.
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