Hong Kong Monetary Authority Discusses Digital Currency Applications

According to Foresight News, the Hong Kong Monetary Authority (HKMA) has addressed market rumors regarding the potential halt of digital Hong Kong dollar applications in the retail sector. HKMA Deputy Chief Executive Li Da-chi stated that the use of stablecoins in retail has not been ruled out, highlighting significant opportunities for their application, though the actual usage will be determined by commercial entities. Li further explained that digital Hong Kong dollars, stablecoins, and tokenized deposits share similar technological characteristics, differing mainly by their issuers. The digital Hong Kong dollar is classified as a 'public currency,' while tokenized deposits and stablecoins are considered 'private currencies.' He noted that digital Hong Kong dollars and tokenized deposits are inclined to use private blockchains, whereas stablecoins are predominantly issued on public blockchains. Additionally, HKMA Assistant Chief Executive (Financial Infrastructure) Zhou Wenzheng revealed that, based on the authority's received intentions, seven banks are planning to launch tokenized deposits this year.