HKMA: the Promotion of Digital Currency May not be Appropriate because Local Market is Limited

Abstract : Hong Kong can launch electronic money in cooperation with the Bank of Thailand to make commercial institutions more convenient.

ChainDD
ChainDD

May 21

According to FINET.HK, the Hong Kong Monetary and Financial Research Center, which is responsible for the research work of the Hong Kong Monetary Authority's Institute of Finance, published the first applied financial research report entitled "Hong Kong Banking Financial Technology Adoption and Innovation". 

When answering questions at the press conference, a relevant person from HKMA stated that Hong Kong already has electronic wallets and traditional electronic payment tools at the retail level to meet the needs of the public. 

When it comes to launching digital currencies at the retail level by Hong Kong Monetary Authority and the Bank of Thailand, the relevant person said that Hong Kong market is relatively limited and may not be appropriate for digital currencies. 

Instead, in cross-border remittances, Hong Kong can launch electronic money in cooperation with the Bank of Thailand to make commercial institutions more convenient.

As for fast money transfers, it is itself a technology-friendly measure. For Hong Kong, the use of Hong Kong dollars and Chinese Yuan is the most common. Therefore, fast money transfers should include these two currencies. 

Other currencies, such as the US dollar and the Euro, are less used in the Hong Kong market. The relevant person believed that there is no need for expansion in the short term, but in the future, Hong Kong will pay attention to the application of other currencies in different scenarios.

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