Connect with us

Cryptocurrency

Hong Kong is working on investor protection regulations, central bank executives say

Avatar

Published

on

Central bankers from around the world are currently in Thailand to discuss the role of central banks in the evolving financial technology. The conspiracy It is jointly hosted by the Bank of Thailand (BOT) and the Bank for International Settlements (BIS).

A panel discussion on digital monetary systems featured Eddie Yu, Chief Executive of the Hong Kong Monetary Authority, Changyeong Rhee, Governor of the Bank of Korea, Adrian Orr, Governor of the Reserve Bank of New Zealand, and Cecilia Skingsley of the Bank for International Settlements. The rise of digital assets f Central Bank Digital Currency (CBDC) and risks associated with new technology.

The Chairman of the Monetary Authority of Hong Kong discussed the innovations and benefits of blockchain technology and its potential impact on central banks. In the long term, stablecoins and cryptocurrencies can offer a more efficient and cost-effective way to transact, Yue said. However, he noted that with any new technology, there are some risks associated with it whether it is innovation or operational risk.

Yue pointed out that blockchain is an inherently decentralized technology, so mitigating chain risks is more complex. This is why organizers should focus on off-chain activities. It is to explain:

We can start by regulating off-chain activities like regulating virtual asset exchanges. Hong Kong will soon offer not only AML aspect but also investor protection.”

He also revealed that the Hong Kong government is working on separate regulations that align with the international consensus on regulating the stablecoin industry.

Related: FTX was the ‘fastest’ corporate failure in US history – trustee calls for investigation

Changyong Rhee, Governor of the Bank of Korea, was not very optimistic about the future of blockchain technology, especially in the monetary sector, in light of the recent cryptocurrency contagion. He wasn’t sure if “we’re seeing the benefit of this technological development lately,” he said.

“I was more positive before, but after seeing the issues with Luna and Terra and now FTX. I don’t know [if] We will see the real benefit from this new technology, at least for monetary policy.”