Hong Kong Monetary Authority: Studying the establishment of a regulatory framework for digital Hong Kong dollar or stablecoins

ChainCatcher news, according to Radio Television Hong Kong, the Hong Kong Monetary Authority (HKMA) stated that it is studying the establishment of a regulatory framework for the digital Hong Kong dollar or stablecoins, as well as promoting the industry's application of Distributed Ledger Technology (DLT) to tokenize bank deposits. Next quarter, it will hold a seminar with the industry to introduce DLT technology.

HKMA Vice President Yueng Kwok-hang stated that there is no timetable for promoting deposit tokenization, nor will it mandate all banks to follow suit. The process will not be linked to the research on the digital Hong Kong dollar; both will proceed in parallel.

Assistant Chief Executive of Banking Supervision Chan King-wang expressed the hope that DLT technology can be more widely applied in the future, such as reducing the trading time for bond issuance to T+1. He also acknowledged that the DLT platform still faces limitations regarding whether the technology is mature enough and its stability, requiring further research in the future. However, once the technology matures, there will be opportunities to expand into the tokenization of securities, real estate, and mortgage products.