The city of Hong Kong has announced in a speech new Web3 and digital yuan initiatives in a specific budget for 2024–2025.
TakeAway Points:
- Hong Kong, in a speech, announced a series of new initiatives and regulations it plans to implement in 2024.
- The new initiatives are embedded in the Hong Kong city budget for 2024–2025.
- As part of its digital finance initiatives, the city would expand the digital yuan pilot and expedite the creation of a Web3 sandbox for stablecoins.
Hong Kong to Launch New Web3 and Digital Yuan Initiatives
The city of Hong Kong has included new Web3 and digital yuan initiatives in a specific budget for 2024–2025. Paul Chan, Financial Secretary, explained that the expansion of these initiatives would be directed toward quickening the encouragement of superior digital economy development in the city.
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In addition to the programmable payments, offline payments, and tokenized deposits that were examined in the e-HKD’s first phase, Chan mentioned that the CBDC’s second phase would investigate new use cases. Also, the city intends to broaden the pilot program for digital yuan in Hong Kong.
Moreover, Chan added that citizens will create digital yuan wallets funded by Faster Payment System (FPS) , a use case previously tested during the 19th Asian Games
“this would enhance the efficiency and user experience of cross-boundary payment services.”
He emphasized
Furthermore,Chan disclosed that in order to maintain financial stability without sacrificing innovation, the city would allow institutions to test-issue stablecoins in a sandbox.
Participants will be able to test the “issuance process, business models, investor protection, and risk management systems” of stablecoins in this sandbox. It will also be pertinent when discussing potential regulations for these assets in the future.
According to Joseph Chan Ho-lim, Secretary for Financial Services and the Treasury, Chinese mainlanders are still using these platforms as a conduit for bitcoin asset investments.
