Hong Kong and UAE Strengthen Financial Cooperation

According to Odaily, Hong Kong's Deputy Secretary for Financial Services and the Treasury, Joseph Chan, highlighted the growing financial cooperation between Hong Kong and Dubai during his opening speech at the Invest in UAE Forum. Over the past year, a licensed insurtech company from Hong Kong has entered into a strategic partnership with the oldest insurance company in the UAE. This collaboration, which focuses on digital asset custody insurance, has received approval from the UAE Central Bank to operate locally. In the realm of cross-border payments, Chan noted that the Hong Kong Monetary Authority and the UAE Central Bank, along with three other central banks and the Innovation Hub of the Bank for International Settlements, are collaborating on a project named mBridge. This initiative explores the application of wholesale central bank digital currencies (CBDCs). The project completed its pilot phase in 2022, involving 20 banks from four jurisdictions. This year, the project has reached the Minimum Viable Product (MVP) stage and aims to further expand participation from both the public and private sectors.