Global adoption of Central Bank Digital Currency (CBDC) is on the rise amid increasing volatility in the crypto market. However, Hong Kong has decided to add to this list of countries that use CBDC.
Hong Kong sets regulations for CBDC
According to reports, the Hong Kong Monetary Authority (HKMA) is preparing to roll out the “digital Hong Kong dollar”. Lee Ka Chiu John, Chief Executive of HKSAR said he is studying the market’s view on stablecoin regulation. With this, the government has started the preparatory work for the Digital HKD.
He added that the government has submitted a draft proposal to introduce a legal licensing regime for virtual assets. However, the Monetary Authority is specifically used to gain knowledge about the regulation of stablecoins from a market perspective.
This is done to keep the regulations in line with international regulatory recommendations. However, local conditions are taken into account when drawing up the rules.
The Monetary Authority of Hong Kong has started preparatory work for the Digital Hong Kong Dollar. While the authority is also cooperating with the mainland institution to expand testing.
Central Bank Backed Token in Demand Around the World
Previously, Coingape reported that the International Monetary Fund (IMF) released a report stating that nearly 100 countries around the world have expressed interest in CBDC. However, the central bank backed currencies are in the research or development stage.
Currently, Nigeria and the Bahamas are the only two countries that have fully launched their CBDC. Until July 2022, the CBDC of 15 countries are in the pilot phase. While 15 others are currently in the Proof of Concept stage. However, about 65 countries are still in the research phase.
Recently, the Reserve Bank of India (RBI) has stated that it will also begin the trial launch of its e-rupee.
Ashish believes in decentralization and has a keen interest in evolving Blockchain technology, the cryptocurrency ecosystem and NFTs. He aims to create awareness around the growing Crypto industry through his writings and analysis. When he’s not writing, he plays video games, watches a thriller, or works out outside. Reach me at [email protected]
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This post Hong Kong will soon launch its CBDC
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