Hong Kong Monetary Authority: is studying the establishment of a regulatory framework for digital Hong Kong dollars or stable coins to promote the tokenization of bank deposits

Odaily Planet Daily News The Hong Kong Monetary Authority stated today that it is studying the establishment of a regulatory framework for the digital Hong Kong dollar or stable currency, and promoting the application of distributed ledger technology (DLT) in the industry to tokenize bank deposits, and will hold a seminar with the industry next quarter DLT technology will be introduced. Ruan Guoheng, vice president of the Hong Kong Monetary Authority, said that there is no timetable for the promotion of deposit tokenization, and it will not be mandatory for all banks to follow suit. The relevant process will not be linked to the study of the digital Hong Kong dollar, and the two will be carried out in parallel. Chen Jinghong, Assistant President of Banking Supervision, said that he hopes that DLT technology will be more widely used in the future, such as reducing the transaction time of bond issuance to T+1. He also admitted that the DLT platform still faces limitations such as whether the technology is mature enough and whether it is stable enough. Further research is needed in the future, but when the technology is mature, there is an opportunity to expand to the tokenization of securities, buildings, and mortgage products in the future. (RTHK Network)