Hong Kong, Thai regulators hint at possible collaboration on central bank digital currency

Maria Nikolova

The Hong Kong Monetary Authority and the Bank of Thailand have entered into a Memorandum of Understanding to foster fintech collaboration.

The Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) have entered into a Memorandum of Understanding (MoU) in order to spur collaboration between the two regulatory authorities in promoting financial innovation.

Under the MoU, the HKMA and BOT may collaborate on referral of innovative businesses, information and experience sharing, and joint innovation projects. One potential collaboration under consideration by the two authorities is a joint research project on Central Bank Digital Currency (CBDC). The regulators note that such a collaboration may benefit from the knowledge and experience they gained from their respective CBDC research studies, namely Project LionRock of the HKMA and Project Inthanon of BOT.

Project LionRock was conducted by the HKMA in partnership with the three note-issuing banks in Hong Kong, the Hong Kong Interbank Clearing Limited and the R3 consortium. The study aims to better understand the feasibility, implications, benefits and challenges of implementing a CBDC on a Distributed Ledger Technology (DLT) platform through exploring its use in domestic inter-bank payments, corporate payments at wholesale level, and delivery-versus-payment of debt securities settlement.

Hong Kong has been open to the development of new financial technologies. Its approach to virtual assets has also been open-minded. In November 2018, the Hong Kong Securities and Futures Commission (SFC) provided details on its approach to virtual asset portfolios managers, fund distributors and trading platform operators. In the initial exploratory stage, the SFC would not grant a licence to platform operators. Instead, it would discuss its expected regulatory standards with platform operators and observe the live operations of the virtual asset trading platforms in light of these standards. The SFC said it would critically consider whether the virtual asset trading platforms are, in fact, appropriate to be regulated by the SFC in light of the performance of these trading platforms in the Sandbox.

Read this next

Crypto Insider

Why Self-Custody is the Key to Secure Crypto Trading

Crypto trading is fast gaining popularity; as of writing, the total market capitalization stands at $2.3 trillion, double what it was at the onset of the 2021 bull market.

Industry News

UK FCA sues Lee Steven Maggs for FX scam Kube Trading

‘Kube Trading’ allegedly received around £2.67 million for FX trading and concealed significant losses from investors.

Market News

AUD/USD Soars Following Inflation Report

Australia’s CPI surge hints at prolonged tight monetary policy. Watch the Aussie dollar as US economic data looms.

Institutional FX

GCEX reports drop in turnover in 2023 due to crypto winter

“The crypto winter had a huge impact across the industry, and GCEX was no exception. However, in response to the decline in revenue, we have been resilient and adaptive, navigating our costs effectively and diversifying revenue streams such as introducing staking services for institutional and professional clients.”

Institutional FX

FxGrow taps Integral’s SaaS brokerage workflow

“FxGrow’s decision to partner with us is indicative of the growing advantage for brokers to leverage tier-one institutional-grade technology while maintaining control over their own platform. Integral is well-positioned to provide the SaaS solutions that will enable these businesses to better compete in the market.”

Financewire

FBS Financial Market Analysts Forecast Gold Prices to Rise to $2,800

FBS, a leading global broker that has recently launched an upgraded FBS app, projects gold price surge to $2,800 per ounce by the close of 2024.

Market News

Adapting to Global Economic Shifts Japan’s Monetary Policy in Focus

Amidst the evolving landscape of global economics, Japan’s monetary policy stands as a testament to adaptability and strategic foresight. The Bank of Japan (BoJ) has embarked on a nuanced approach to maintain stability while navigating the complexities of a changing financial environment.

blockdag

Crypto News: BlockDAG’s X30 Miner Excels in Crypto Mining While Ethereum & XRP Prices Fall

Learn how BlockDAG’s X30 Miner remains a solid investment despite Ethereum’s price volatility and XRP’s declining trends.

Digital Assets

SEC seeks $5.3 billion fine for Terraform and co-founder Do Kwon

Federal regulators are pursuing a fine of $5.3 billion against Terraform Labs and its co-founder Do Kwon for defrauding investors, following a recent verdict that found them liable for a multi-billion-dollar fraud.

<