Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

Hong Kong to explore its own digital currency and keep testing China’s Digital Yuan

Hong Kong to explore its own digital currency and keep testing China’s Digital Yuan

Plans fintech infusion for local banking sector, plus data-sharing infrastructure
Hong Kong has revealed a strategy to give its financial services sector a fintech infusion.

The sector is important to Hong Kong, as it accounts for around 20 per cent of GDP and seven per cent of employment. Hong Kong’s also important to China, as its markets are more open to the world than the Middle Kingdom’s own stock exchanges and banks. Chinese companies often seek Hong Kong listings to access foreign capital.

However, China’s recent actions to unwind the “one country, two systems” governance model for Hong Kong have led to much speculation about the future of the Special Administration’s financial services industry.

The new strategy, outlined this week by Hong Kong Monetary Authority (HKMA) CEO Eddie Yue, appears to assume that Hong Kong will remain a financial hub.

The CEO said the HKMA “will begin a study on e-HKD to understand its use cases, benefits, and related risks” and ensure the Special Administrative Region is ready to handle all central bank digital currencies.

Yue also pledged to continue collaboration with the People's Bank of China to support its Digital Yuan “with a view to providing a convenient means of cross-boundary payments for both domestic and mainland residents.”

Another element of the strategy will see the HKMA assess all local banks’ fitness for fintech.

The HKMA will therefore conduct “a Tech Baseline Assessment to take stock of banks' current and planned adoption of fintech”. If the organisation finds underdeveloped fintech business areas or technology capabilities, it will step in with as-yet-unspecified support.

Yue’s speech introducing the strategy mentioned “Investech, Wealthtech, Insurtech and Greentech” plus blockchain and AI as technologies likely to need a leg-up from the Authority.

The Authority also plans to “take the lead in enhancing the city's existing data infrastructure and building new ones, including Commercial Data Interchange, digital corporate identity, and a DLT-based credit data sharing platform, to facilitate consent-based data sharing.”

Other initiatives include recruiting and training more of the skilled workers the sector requires and ensuring government agencies can act in concert to develop fintech-friendly policy.

The new strategy is named “Fintech 2025” and the HKMA said more detail will flow in the future.

“Despite this promise of support, we recognise that banks, especially smaller ones, may still have doubts about going ‘all in’ with fintech given the heavy talent and resource investments required,” Yue admitted in his speech. “However, we are confident that by offering support that is targeted, specific to local market circumstances, and where it is needed, banks of all sizes will soon grow to appreciate the case for ‘going’ fintech.”
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Emails Leaked: How Passenger Luggage Became a Side Income for Airport Workers
Polish MEP: “Dear Leftists - China is laughing at you, Russia is laughing, India is laughing”
Western Europe Records Hottest June on Record
BRICS Expands Membership with Indonesia and Ten New Partner Countries
Elon Musk Founds a Party Following a Poll on X: "You Wanted It – You Got It!"
China’s Central Bank Consults European Peers on Low-Rate Strategies
France Requests Airlines to Cut Flights at Paris Airports Amid Planned Air Traffic Controller Strike
Poland Implements Border Checks Amid Growing Migration Tensions
Emirates Airline Expands Market Share with New $20 Million Campaign
Amazon Reaches Milestone with Deployment of One Millionth Robot
Yulia Putintseva Calls for Spectator Ejection at Wimbledon Over Safety Concerns
House Oversight Committee Subpoenas Former Jill Biden Aide Amid Investigation into Alleged Concealment of President Biden's Cognitive Health
Amazon Reaches Major Automation Milestone with Over One Million Robots
Extreme Heat Wave Sweeps Across Europe, Hitting Record Temperatures
Meta Announces Formation of Ambitious AI Unit, Meta Superintelligence Labs
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Germany Votes to Suspend Family Reunification for Asylum Seekers
Budapest Pride Parade Draws 200,000 Participants Amid Government Ban
Southern Europe Experiences Extreme Heat
Xiaomi's YU7 SUV Launch Garners Record Pre-Orders Amid Market Challenges
Jeff Bezos and Lauren Sanchez's Lavish Wedding in Venice
Russia Launches Largest Air Assault on Ukraine Since Invasion
Massive Anti-Government Protests Erupt in Belgrade
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Hungary's Prime Minister Criticizes NATO's Role in Ukraine
EU TO HUNGARY: LET THEM PRIDE OR PREP FOR SHADE. ORBÁN TO EU: STAY IN YOUR LANE AND FIX YOUR OWN MESS.
Hungarian Scientist to Conduct 30 Research Experiments on the International Space Station
NATO Members Agree to 5% Defense Spending Target by 2035
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
International Astronaut Team Launched to Space Station
Macron and Merz: Europe must arm itself in an unstable world
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Iran Intensifies Crackdown on Alleged Mossad Operatives After Sabotage Claims
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
Oil Prices Set to Surge After US Strikes Iran
BA and Singapore Airlines Cancel Dubai Flights Amid Middle East Tensions
Trump Faces Backlash from MAGA Base Over Iran Strikes
Meta Bets $14 B on Alexandr Wang to Drive AI Ambitions
FedEx Founder Fred Smith, ‘Heart and Soul’ of the Company, Dies at 80
Chinese Factories Shift Away from U.S. Amid Trump‑Era Tariffs
Pimco Seizes Opportunity in Japan’s Dislocated Bond Market
Labubu Doll Drives Pop Mart to Status as China’s Most Valuable Toy Maker
Global Coal Demand Defies Paris Accord Goals
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Telegram Founder: I Will Leave My Fortune to Over 100 of My Children
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
×