Hong Kong Official Rules Out Plan For Central Bank Digital Currency, Report Says

May 31, 2018 5:50 pm Published by

A high-level government official on Wednesday said the Hong Kong Monetary Authority (HKMA) currently has no plan to issue a central bank digital currency (CBDC), CoinDesk reported Thursday.

Joseph Chan, acting secretary for financial services and the treasury, said HKMA research shows CBDC would be less useful in Hong Kong compared to other jurisdictions, the report said.

“The HKMA has carried out research on CBDC,” Chan said. “At the same time, the HKMA notes that the benefits of CBDC and its efficiency gains will depend on the actual circumstances of a jurisdiction. In the context of Hong Kong, the already efficient payment infrastructure and services make CBDC a less attractive proposition.” 

He continued: “The HKMA has no plan to issue CBDC at this stage but will continue to monitor the international development,” CoinDesk reported.

Chan’s response, the report said, is noteworthy because it provides an update on the HKMA’s explorations of a CBDC prototype as part of its wider effort to gauge the potential of distributed ledger technology.

In April 2017, in a response to legislators, the HKMA revealed the banking authority has started “research and a proof-of-concept work on central bank digital currency,” the report said.

The HKMA said at the time the first phase of the study would expect to be done by the end of 2017, based on which the authority would decide on the appropriate action forward, the report said.

WN.com, Jack Durschlag



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