After India and China, which have led the CBDC revolution in Asia, Hong Kong is accelerating its sweats to introduce a public digital currency in their being fiscal system. The administration of Hong Kong is presently working on the roadmap to introduce thee-HKD CBDC to its estimated population of over 7.5 million in the coming months. While India and China have decided on their CBDCs to be regulated by the central banks, Hong Kong has left that decision to be finalized for an after time.
In a new twist, Hong Kong has left it to the banks to bandy and decide if they wish to keep thee-HKD CBDC either centralized — under their control, or decentralized where the CBDC would be distributed down from a central, authoritative position in small fragments.
“ They( the banks) are allowed to go and review and probe and also propose back, ” a CoinDesk report quoted a source familiar with the situation as saying.
Unlike the UK and the US, which have taken a rather popular approach and invited suggestions on CBDCs from their citizens, Hong Kong wishes to keep the process more in the hands of the authorities.
Regular citizens of Hong Kong aren’t likely to be part of any CBDC-related decision timber. While India did hold several rounds of conversations with finance ministry officers and blockchain assiduity interposers, China isn’t known to have taken an analogous approach.
The overall approach to Web3 in Hong Kong has been veritably progressive. The citizens there are drinking Web3 technologies like cryptocurrencies, NFTs, and the metaverse with an experimentative approach.
Forex, in its rearmost ‘ Worldwide Crypto Readiness Report’ suggested that Hong Kong is the most crypto-ready country in the world. In the indicator, Hong Kong bagged 8.6 out of 10 in terms of being economic for the crypto sector.
Given the growing interest in crypto among its citizens, the country has also amended its Anti-Money Laundering( AML) and Counter-Terrorist Financing( Amendment) Bill 2022, to now include crypto deals as well.
Introducing a CBDC in its fiscal system is a decision that Hong Kong has started acting upon after due consideration.
erected on blockchain networks, a CBDC, or a Central Bank Digital Currency, is a virtual representation of a country’s edict currency. Replacing physical notes with CBDCs not only reduces the cost of managing them but also adds a subcaste of incommutable ephemerality in maintaining fiscal records.