According to the latest reports, the “Fintech 2025” strategy has been published by the regulatory authority of Hong Kong. The reports confirm that the particular authority that has worked on the new strategy is The Hong Kong Monetary Authority (HKMA).
The local media sources have confirmed that the HKMA has also shared its homework and guidelines on the CBDC. In the digital finance innovation package, the HKMA has included the guidelines for both wholesale and retail integrated with CBDC.
The media sources have confirmed that the HKMA has released the Fintech 2025 strategy on Tuesday, June 8, 2021. In the strategy, the HKMA has revealed that the central bank digital currency (CBDC) technology would be playing a huge role in the advancement of digital finance.
The regulatory authority will be playing a huge role in the development and advancement of the CBDC technology. In the guidelines, the regulator has claimed that by 2025, it would be able to promote comprehensive digital finance with CBDC technology.
The HKMA has suggested that the adoption of the CBDC strategy and its development is of really high importance for the country. If the technology is adopted, then it would ensure that the country would have no issues implementing it to the wholesale and retail sector as soon as it is launched.
The country has to be ready to implement the CBDC technology in both major sectors and the strategy would ensure that it happens. The HKMA has confirmed that in order to execute its strategy in the most effective manner, it has partnered with another regulator.
According to the HKMA, it has partnered with the Bank for International Settlement for performing its research. The research would be based on the digital retail sector and how the digital dollar of Hong Kong would work in the environment.
The research would focus on finding any flaws, drawbacks, and risks involved when dealing with the CBDC. Additionally, the research would also focus to find the advantages, benefits, and more innovative options for the CBDC technology.
The HKMA has revealed that its development of the CBDC would also include research for cross-border transactions. To execute this plan, the HKMA will be collaborating with the central bank of China and test cross-border transactions.
The HKMA has revealed that it is currently at an advantage as it is a neighbor to China. China has already gained a lot of prowess in the CBDC sector had joined hands with HKMA to carry out cross-border transaction testing for their CBDC.
Therefore, China would be able to offer a lot of help and support to Hong Kong in the development phase of the CBDC.