The Hong Kong government continues to vigorously promote the development of the Web3 field and explore various blockchain applications. Eddie Yue, Chief Executive of the Hong Kong Monetary Authority, announced yesterday that in the coming months, they anticipate launching the second tokenized green bond.

Furthermore, in the first half of next year, various central bank digital currency cross-border network projects, such as mBridge, are planned to introduce the Minimum Viable Product (MVP), which is expected to attract more central banks to join.

The Hong Kong Monetary Authority (HKMA) released a report in August detailing the experience of issuing tokenized bonds. It stated that this demonstrated the feasibility of using Distributed Ledger Technology (DLT) in real capital market transactions within Hong Kong's existing legal framework.

The report also showcased how DLT could enhance efficiency, liquidity, and transparency in the bond market.

Developing Different Blockchain Application Plans

During today's speech at the Hong Kong Economic Summit, Eddie Yue, Chief Executive of the Hong Kong Monetary Authority (HKMA), stated that HKMA will continue its work over the next few years in three areas: opportunities within mainland China, green finance, and financial technology.

He mentioned that the scale of Hong Kong's green bonds and loans has increased from US$11 billion two years ago to over US$80 billion. He believes this momentum will persist, with plenty of room for further expansion.

Eddie Yue mentioned that green finance and financial technology can work hand in hand. In the coming months, there are plans to launch a second round of tokenized green bonds. The HKMA will explore conducting the entire redemption process on blockchain and considering integrating the Internet of Things.

Collaborating with Central Banks in Different Locations

Regarding Central Bank Digital Currency (CBDC), Eddie Yue mentioned that Hong Kong is recognised globally for leading CBDC projects. The mBridge project, encompassing multiple CBDC cross-border networks, aims to launch its Minimal Viable Product (MVP) in the first half of next year. They hope that the product's introduction will attract more central banks to join the initiative.

The mBridge project currently involves central bank institutions from four jurisdictions, including the Bank for International Settlements Innovation Hub (BISIH) Hong Kong Centre, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China, and the Central Bank of the United Arab Emirates.

Regarding the retail digital Hong Kong dollar, Eddie Yue mentioned that the HKMA will conduct further research with financial institutions next year. He added that if Hong Kong banks fully digitise, it could enhance their competitiveness within the region and bring numerous opportunities for startups.