The Hong Kong Monetary Authority (HKMA), which is the region's central bank, is not planning to issue the сentral bank's digital currency (CBDC).
For the first time, HKMA reported that it was conducting a CBDC study a year ago. The monetary authority suggested that it would complete the first stage by the end of the year, and based on its results, it would determine the feasibility of issuing a digital currency.
A year later, legislator Denis Kwok asked the government if it was considering issuing a cryptocurrency to maintain Hong Kong's competitive advantage in financial innovation. The answer to his question was made at a recent meeting of the Legislative Council in Hong Kong.
Joseph Chan, acting secretary for financial services and the treasury, said that after conducting a CBDC study, HKMA concluded that the digital currency would be less useful in Hong Kong:
"The HKMA has carried out research on CBDC. 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. The HKMA has no plan to issue CBDC at this stage but will continue to monitor the international development," – he said.
Last month, the central bank of Japan announced that its forthcoming plans do not include the issue of the digital currency.
The Bank of England also adheres to the same position, but a week ago, it published a working paper on the possible risks and financial stability of CBDCs. The paper constructs three models, each with a different set of sectors that have access to the CBDC.
By Ekaterina Ulyanova