Both financial bodies may start their collaboration by carrying out research on the Central Bank Digital Currency (CBDC).
14 May, 2019 | AtoZ Markets – The Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) have signed a Memorandum of Understanding (MoU) for promoting financial innovation between the two regulatory bodies.
The agreement aims at a fintech collaboration on referral of innovative businesses, information and experience sharing, and joint innovation projects between the HKMA and the BOT.
The CBDC research the regulators intend to start may well benefit from both of; the project of LionRock that the HKMA runs, and the Inthanon project of Inthanon run by the BOT.
The HKMA had conducted Project LionRock with three note-issuing banks in Hong Kong; the Hong Kong Interbank Clearing Limited and the R3 consortium.
The cooperation between the HKMA and the three banks seeks to understand the feasibility, implications, benefits and challenges of implementing a CBDC on a Distributed Ledger Technology (DLT) platform, through testing its use in domestic inter-bank payments, corporate payments at wholesale level, and delivery-versus-payment of debt securities settlement.
Blockchain investment probability after besieging cryptos
In a contrary news to this context, Hong Kong was reported to have tightened its grip over the cryptocurrency market in the country.
The local authorities amid news of their intention to put exchanges traders and other pertinent firms under the surveillance of the Securities and Futures Commission, as AtoZ Markets reported in December last year.
The step was taken at the time in an attempt to restrict the booming of the ICO industry the city was known of, with many ICO-related stories about incidents of fraud and scam, the thing that sounded as a warning whistle for regulators in the country to take action.
The regulator had sent warning letters to seven local exchanges after receiving complaints from investors, in which they said they were not able to withdraw fiat or cryptocurrencies from their accounts, amid accusations of assets misappropriation and market manipulation.
The similar issues coming from the cryptocurrency sphere in the country seem to have pushed some judicial authorities to specialize in settling such cases, where an internet court in Hangzhou changed its direction to blockchain, for fighting broadly-spread piracy online writer undergo, as the reports said by the end of the last year.