Arab Press

بالشعب و للشعب
Tuesday, Jul 01, 2025

Hong Kong to explore its own digital currency and keep testing China’s Digital Yuan

Hong Kong to explore its own digital currency and keep testing China’s Digital Yuan

Plans fintech infusion for local banking sector, plus data-sharing infrastructure
Hong Kong has revealed a strategy to give its financial services sector a fintech infusion.

The sector is important to Hong Kong, as it accounts for around 20 per cent of GDP and seven per cent of employment. Hong Kong’s also important to China, as its markets are more open to the world than the Middle Kingdom’s own stock exchanges and banks. Chinese companies often seek Hong Kong listings to access foreign capital.

However, China’s recent actions to unwind the “one country, two systems” governance model for Hong Kong have led to much speculation about the future of the Special Administration’s financial services industry.

The new strategy, outlined this week by Hong Kong Monetary Authority (HKMA) CEO Eddie Yue, appears to assume that Hong Kong will remain a financial hub.

The CEO said the HKMA “will begin a study on e-HKD to understand its use cases, benefits, and related risks” and ensure the Special Administrative Region is ready to handle all central bank digital currencies.

Yue also pledged to continue collaboration with the People's Bank of China to support its Digital Yuan “with a view to providing a convenient means of cross-boundary payments for both domestic and mainland residents.”

Another element of the strategy will see the HKMA assess all local banks’ fitness for fintech.

The HKMA will therefore conduct “a Tech Baseline Assessment to take stock of banks' current and planned adoption of fintech”. If the organisation finds underdeveloped fintech business areas or technology capabilities, it will step in with as-yet-unspecified support.

Yue’s speech introducing the strategy mentioned “Investech, Wealthtech, Insurtech and Greentech” plus blockchain and AI as technologies likely to need a leg-up from the Authority.

The Authority also plans to “take the lead in enhancing the city's existing data infrastructure and building new ones, including Commercial Data Interchange, digital corporate identity, and a DLT-based credit data sharing platform, to facilitate consent-based data sharing.”

Other initiatives include recruiting and training more of the skilled workers the sector requires and ensuring government agencies can act in concert to develop fintech-friendly policy.

The new strategy is named “Fintech 2025” and the HKMA said more detail will flow in the future.

“Despite this promise of support, we recognise that banks, especially smaller ones, may still have doubts about going ‘all in’ with fintech given the heavy talent and resource investments required,” Yue admitted in his speech. “However, we are confident that by offering support that is targeted, specific to local market circumstances, and where it is needed, banks of all sizes will soon grow to appreciate the case for ‘going’ fintech.”
Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Robots Compete in Football Tournament in China Amid Injuries
China Unveils Miniature Insect-Like Surveillance Drone
Marc Marquez Claims Victory at Dutch Grand Prix Amidst Family Misfortune
Iran Executes Alleged Israeli Spies and Arrests Hundreds Amid Post-War Crackdown
Trump Asserts Readiness for Further Strikes on Iran Amid Nuclear Tensions
Qatar Airways Clears Backlog of Passengers Following Missile Threats
Iran's Parliament Votes to Suspend Cooperation with Nuclear Watchdog
Trump Announces Upcoming US-Iran Meeting Amid Controversial Airstrikes
Trump Moves to Reshape Middle East Following Israel-Iran Conflict
NATO Leaders Endorse Plan for Increased Defence Spending
U.S. Crude Oil Prices Drop Below $65 Amid Market Volatility
“You Have 12 Hours to Flee”: Israeli Threat Campaign Targets Surviving Iranian Officials
Oman Set to Introduce Personal Income Tax, First in Gulf
Germany and Italy Under Pressure to Repatriate $245bn of Gold from US Vaults
Trump Praises Iran’s ‘Very Weak’ Response After U.S. Strikes and Presses Israel to Pursue Peace
WATCH: Israeli forces show the aftermath of a massive airstrike at Iran's Isfahan nuclear site
We have new information and breaking details to share about what is shaping up to be a historic air campaign tonight
Six Massive Bombs Dropped on Fordow; Trump: 'A Historic Moment for the U.S., Israel, and the World'
Fordow: Deeply Buried Iranian Enrichment Site in U.S.–Israel Crosshairs
United States Conducts Precision Strikes on Iran’s Nuclear Sites
US strikes Iran nuclear sites, Trump says
Pakistan to nominate Trump for Nobel Peace Prize.
Israel Confirms Assassination of Quds Force Commander in Tehran
16 Billion Login Credentials Leaked in Unprecedented Cybersecurity Breach
Senate hearing on who was 'really running' Biden White House kicks off
G7 Leaders Fail to Reach Consensus on Key Global Issues
Mass exodus in Tehran as millions try to flee following Trump’s evacuation order
Iranian Military Officers Reportedly Seek Contact with Reza Pahlavi, Signal Intent to Defect
China's Iranian Oil Imports Face Disruption Amid Escalating Middle East Tensions
Trump Demands Iran's Unconditional Surrender Amid Escalating Conflict
Israeli Airstrike Targets Iranian State TV in Central Tehran
President Trump is leaving the G7 summit early and has ordered the National Security Council to the Situation Room
Netanyahu Signals Potential Regime Change in Iran
Analysts Warn Iran May Resort to Unconventional Warfare
Iranian Regime Faces Existential Threat Amid Conflict
Energy Infrastructure Becomes War Zone in Middle East
Iran Conducts Ballistic Missile Launches Amid Heightened Tensions with Israel
Iran Signals Openness to Nuclear Negotiations Amid Ongoing Regional Tensions
Shock Within Iran’s Leadership: Khamenei’s Failed Plan to Launch 1,000 Missiles Against Israel
UK Deploys Jets to Middle East Amid Rising Tensions
Exiled Iranian Prince Reza Pahlavi Urges Overthrow of Khamenei Regime
Wreck of $17 Billion San José Galleon Identified Off Colombia After 300 Years
Iran Launches Extensive Missile Attack on Israel Following Israeli Strikes on Nuclear Sites
Israel Issues Ultimatum to Iran Over Potential Retaliation and Nuclear Facilities
Coinbase CEO Warns Bitcoin Could Supplant US Dollar Amid Mounting National Debt
Trump to Iran: Make a Deal — Sign or Die
Operation "Like a Lion": Israel Strikes Iran in Unprecedented Offensive
Israel Launches 'Operation Rising Lion' Targeting Iranian Nuclear and Military Sites
Israeli Forces Intercept Gaza-Bound Aid Vessel Carrying Greta Thunberg
IMF Warns of Severe Global Trade War Impacts on Emerging Markets
×