Category Archives: HKMA

Auto Added by WPeMatico

Hong Kong Unis Scoop Grant of $20 Million for Blockchain Research

Hong Kong universities are set to receive a USD 20 million grant through government funding for research and development projects in blockchain and fintech.

In an effort to drive blockchain into administrative and financial sectors, Hong Kong is asking its universities to delve deep and come up with answers. The major beneficiaries of this round of specific funding are Hong Kong University of Science and Technology (HKUST), along with the Chinese University of Hong Kong (CUHK), and the City University of Hong Kong (CityU).

Through the project, along with research and development tasks, the universities are also required to report on Hong Kong’s current progress in becoming a fintech regional hub. Professor Tan Jiayin, known for his previous research work entitled ‘Strengthening Hong Kong’s Strategic Position as a Regional and International Business Center’, is to head up the multi-university research project.

Hong Kong’s blockchain push is an attempt to catch up with some of the more fintech proactive countries in the region such as Singapore and Japan. Updating aspects of the financial sector have recently become a focus for private companies and government bodies, who are beginning to regard blockchain technology as a way of modernizing record keeping and speeding up payments, in what is often described as an overly paper-driven industry, particularly given the technologies available today.

Work such as professor Jiayin’s which has already explored blockchain technology, network security, and artificial intelligence learning, as it relates to the current economic climate, will be a boost to the shared university partnership. Jiayin has asked Hong Kong’s banking community to participate in the research as part of the grant relates to the creation of digital currencies, although these have been looked on unfavourably by HK banks in the past, discounting the idea of a CBDC. In an announcement on 30 May, the Hong Kong Monetary Authority (HKMA) decided against the idea.

However, the HKMA announced the launch of a blockchain trade finance solution in partnership with 21 regional banks last month. Also, seven banks including Hong Kong’s banking regulator are to launch a trade finance platform this September using blockchain, including HSBC and Standard Chartered. Notably, HSBC’s Monex digital currency concept in 1998 was reportedly the professor’s brainchild.

The push towards integrating blockchain into Hong Kong’s administrative and financial sectors is not the first after a government plan was released in 2017 to produce a blockchain-based trade financing system to increase settlement efficiency and reduce fraud. This after a heightened level of concern around the cryptocurrency space due to high levels of fraud.

Research recently revealed that the percentage of financial crime involving cryptocurrencies was in fact comparatively low, when compared to other methods of, largely organized, crime in the city.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

Image Courtesy: Pixabay

The post Hong Kong Unis Scoop Grant of $20 Million for Blockchain Research appeared first on BitcoinNews.com.

Hong Kong Government Gives Thumbs Down to Own Crypto

In an announcement on 30 May, the Hong Kong Monetary Authority (HKMA) announced that it currently has no plans to issue a central bank digital currency (CBDC), reports Coindesk.

In April of last year, the HKMA first revealed, in a response to legislators, that the banking authority has started “research and a proof-of-concept work on central bank digital currency”, which would be completed by the end of 2017 and then acted on appropriately later.

Acting secretary for Financial Services and the Treasury, Joseph Chan, claimed that the completed HKMA research revealed that Hong Kong would not particularly profit from adopting a CBDC compared to some other jurisdictions.

“In the context of Hong Kong, the already efficient payment infrastructure and services make CBDC a less attractive proposition. The HKMA has no plan to issue CBDC at this stage but will continue to monitor the international development.”

Hong Kong has been experiencing a heightened level of concern around the cryptocurrency space due to high levels of fraud. Research recently revealed that the percentage of financial crime involving cryptocurrencies was in fact comparatively low, when compared to other methods of, largely organized, crime in the city.

Businesses in Hong Kong have long complained that lending banks’ concerns about money laundering have severely curtailed available customer services. This has also impacted the cryptocurrency industry. The current government stance is that virtual currencies’ largely unregulated position makes them a risk, pointing out that unlike institutions offering fiat currencies, cryptocurrencies have no specific regulation.

Unlike China, rather than ban cryptocurrencies, the Hong Kong government has chosen the educative path with The Financial Service Treasury Bureau (FSTB) and the Investor Education Centre (IEC), all subsidiaries of the Securities and Futures Commission (SFC), teaming up to launch a campaign which began earlier this year, including a TV campaign, warning Hong Kong citizens to stay away from cryptocurrency.

 

Follow BitcoinNews.com on Twitter at https://twitter.com/bitcoinnewscom

Telegram Alerts from BitcoinNews.com at https://t.me/bconews

The post Hong Kong Government Gives Thumbs Down to Own Crypto appeared first on BitcoinNews.com.