Last month, Hong Kong regulators declared the city’s ambitions to become a virtual asset hub. The government is already planning to launch the world’s first tokenized government green bonds.
In the “Policy Declaration on the Development of Virtual Assets in Hong Kong,” the People’s Republic of China’s Special Administrative Region (SAR) of Hong Kong provided clearer instructions for the growth of the virtual asset business. These criteria were included in the document.
In the paper, many other ideas for pilot projects were suggested, one of which being the tokenized issuing of a fresh batch of green bonds for institutional investors. The issuing of government green bonds using tokens will be a first of its kind anywhere in the world, and the debut is scheduled for the end of the year.
The governing bodies in the financial sector are likewise interested in making use of decentralized technologies. Paul Chan Mo-Po, the Financial Secretary, made the following statement: “We need to take full advantage of the potential offered by innovative technologies. However, we also need to be careful to guard against market volatility and potential risks they may cause. This will allow us to prevent transmission of the risks and impacts to the real economy.”
The notification made reference to a central bank digital currency (CBDC), and also said that the HKMA is also investigating the digital Hong Kong dollar as a potential “backbone” and pillar between fiat currencies and virtual assets.
Following up on its earlier consultation, the Hong Kong Monetary Authority has stated that it would hold another consultation on the regulation of stablecoins.
The announcement focused on the development of associated technologies and the complete ecosystem, including virtual money, the exchange of virtual assets, the growth of metaverses, and novel applications for the “tokenization” of securities issuance and trade finance.
Compiled by Coinbold