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Hong Kong unveils stablecoin consultation results
The FSTB and the HKMA conducted the consultation in 2023, and they will release the results “soon” as stablecoin regulations in Hong Kong take shape.
The FSTB and the HKMA conducted the consultation in 2023, and they will release the results “soon” as stablecoin regulations in Hong Kong take shape.
Visa partnered with HSBC and Hang Seng Bank in 2023 on a pilot that combined the e-HKD and tokenized deposits and has now published a report on its success.
Both Hong Kong and France will explore the interoperability of their wholesale CBDC systems via a regulatory sandbox to strengthen communication and collaboration.
Hong Kong’s central bank says that AI is forcing banks to rethink their operations, and some have already redeployed some staff after training them on AI.
Hong Kong has become the first destination beyond mainland China to allow residents to open digital yuan wallets and make payments at local merchant stores.
While blockchain provides the utmost security, there are still some risks to look out for, including pseudonymous validators, which the HKMA said can be addressed by ZKPs and Overlay Networks.
The HKMA chief executive says the central bank is still determining whether there is a real need for a retail CBDC, adding that existing systems in Hong Kong are efficient.
The Hong Kong Monetary Authority has promised to issue the new guidelines in the coming weeks but clarified that they will not be binding laws for users and will not be exhaustive.
The new iteration of its CBDC, the e-HKD, intends to explore new use cases for the CBDC in retail and wholesale verticals, according to the Hong Kong Monetary Authority.
The HKMA's CBDC project supporting tokenization will center on innovative infrastructure for interbank settlement, with aid from banking institutions, the CBDC expert group, and industry players.
Although instances of using digital bonds as collateral are sparse, HSBC and the Bank of East Asia found relative success in their pioneering attempt at a repo agreement.
Hong Kong has showcased the potential of blockchain in powering up the financial sector with the sale of $750 million worth of digital green bonds, which will be issued using HSBC's Orion.