Hong Kong Advances Digital Currency And Virtual Financial Services

According to Odaily, Hong Kong's Chief Executive John Lee has announced that the government will continue to promote policies and initiatives related to central bank digital currencies (CBDCs), mobile payments, virtual banking, virtual insurance, and virtual asset trading, with a focus on integrating artificial intelligence into these innovative financial services. The measures include several key initiatives. Firstly, the government aims to advance the application of CBDCs in cross-border payments. The Hong Kong Monetary Authority (HKMA) is actively testing and exploring various technological solutions and scenarios related to cross-border trade settlements on multiple CBDC cross-border networks. This effort also seeks to increase the participation of both public and private sector institutions. Secondly, the government plans to enhance the regulation of virtual assets and trading. The Financial Services and the Treasury Bureau will complete the second round of consultations on the regulation of over-the-counter virtual asset trading. Additionally, they will submit a virtual licensing system for regulating virtual asset custody service providers. Lastly, the HKMA is promoting the tokenization of real-world assets and the digital currency ecosystem. This includes advancing the Ensemble project, which aims to further integrate digital currencies into the financial system.