Hong Kong’s Financial Secretary, Paul Chan, said that Digital Yuan and Hong Kong Dollars would be used for cross-border payments. The authority has also set aside $7.2 million for web3.
Hong Kong’s financial authorities are turning their attention to using a digital version of the Hong Kong dollar and digital yuan for cross-border payments. Financial Secretary of Hong Kong Paul Chan, in a budget speech for 2023–2024, made the remarks, also stating that HK would continue to strengthen its position as a financial hub.
The development of fintech was one major section of his speech, and he seemed keen on HK utilizing its influence in expanding related initiatives.
“We will continue to advance the application testing and preparatory work of various fintech infrastructure projects, including the “Digital Hong Kong Dollar” and the “Digital Renminbi” for cross-border payment projects.”
Hong Kong is a region that has been very keen on blockchain technology. It has conducted several pilots and tests over the years, and it looks like it will double down on this. China’s CBDC is one of the most used in the world, and its pilot programs frequently make headlines.
Hong Kong Budgets About $7 million for Web3
That enthusiasm for fintech and blockchain solutions extends to web3, which has piqued the interest of governments across the world, including Japan. Chan said that there is a budget of $7.2 million for web3 initiatives. This budget will include large-scale international seminars, promoting cross-sector business cooperation, and holding more youth workshops.
China has seen a good number of web3 and metaverse programs. Meta announced last year that it would run metaverse experiences in Hong Kong cafes, schools, and art institutions.
Stablecoin Regulations to Be Revealed Soon
Hong Kong has also focused on regulating the market, specifically stablecoins. The HK Monetary Authority on Jan. 31 offered a conclusion to its stablecoin position. It stated that the respondents to its consultation paper were in favor of regulating stablecoins with a “risk-based and agile approach.” The authority will describe the specific regulations at a later date.
The HK Securities and Futures Commission (SFC) also stated that all centralized crypto trading platforms would require licensing from the agency. Earlier this year, the SFC also stated that retail investors would only have access to highly liquid crypto assets.
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