As part of its fintech plan, Hong Kong is looking at the CBDC.
The central bank digital currency CBDC is a major development in the world of digital currency which also acts as a development milestone set in sight by Hong Kong.
Hong Kong has taken a step to identify central bank digital currency as one of the joint developments by fintech. This news was released by Hong Kong monetary authority leading to several other speculations. There are many other highlights to this particular press release. The Hong Kong government will now be promoting digital currency and encouraging the banks to adapt to digitalize their currency. Also, start to adopt “fintech” as early as possible.
Hong Kong’s approach to developing CBDC
Hong Kong is not very well developed for central bank digital currency and strengthening the pillar for CBDC is one of the agenda for the government of Hong Kong. When this milestone of digitalizing the whole currency structure is in process, it will also help to enhance and add the development to the existing ecosystem of the currency. In this technology-driven world, Hong Kong will be able to explore many other possibilities is using the funds and help to develop the projects related to fintech.
Other threats for CBDC enactment in Hong Kong
Hong Kong was placed eighth in the “Global Fintech Ecosystem Report, 2020”, which also appreciated the efforts that have been taken by the government. There are many threats that have been countered by the Hong Kong government i.e., Defi (Decentralised Finance), which is hovering around all over the world. Therefore, the innovation in the digital currency world would help the Hong Kong government to advance the ecosystem for CBDC’s structure.