“No Plans for Central Bank Digital Currency”, said Hong Kong Government Official
Of late, Hong Kong’s financial authorities are weighting on the possibility of issuing their own central bank digital currencies (CBDC).
In response to a question regarding the cryptocurrency market and PBoC’s efforts on CBDC from legislator Dennis Kwok, Hong Kong’s acting secretary for Financial Services and the Treasury Joseph Chan indicated that, the Hong Kong Monetary Authority (HKMA) has no plan to issue CBDC at this stage.
Nevertheless, Chan also added that financial authorities in Hong Kong would keep an eye on other countries’ progress on CBDC-related efforts.
He said: “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.”
Chan further disclosed that the Committee on Payments and Market Infrastructures (CPMI) set up by the Markets Committee (MC) of the Bank of International Settlements (BIS) has been recently studying the effect of CBDC in a statement on May 30. CPMI is also formed by the members from the PBoC and HKMA.
In the latest report released by CPIM, they conclude that “currently proposed implementations of CBDC for wholesale payments look broadly similar to, and not clearly superior to, existing infrastructures.”
Furthermore, the document also warns that the efficiency of the existing private retail payment products could curtail the benefits of CBDC, its feasibility for payment applications needs to be further ascertained by specific study and more proof-of-concept work.
In conclusion, Chan emphasized that the government will further monitor the developments around digital currencies and CBDC in order to protect the interest of the investing public in Hong Kong.