The central banks of Hong Kong and Thailand are working hand-in-hand for the issuance of digital currencies for their utilization in cross-border payments between the two countries.
Reported by Reuters on Wednesday, the monetary regulators published a report mentioning the technical feasibility of issuing such central bank digital currencies (CBDC). This, according to the regulators, will make cross border payments more efficient, cheaper, lower risk, and more transparent.
Despite the announcement, no time frame for the launch has been revealed yet.
Unlike decentralized currencies like Bitcoin, CBDCs are fully controlled by the central banks and can be considered as a digital form of fiat currencies.
Earlier, the Hong Kong Monetary Authority (HKMA) scrapped the necessity of developing a CBDC; however, now its stance on the regulator changed as the development is already in force.
2020 – a year of CBDC?
Hong Kong and Thailand regulators are not the only two with a positive view on digital currencies. However, though many regulators are studying the feasibility to issue CBDC, only a few are on the frontline with real progress.
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The People’s Bank of China (PBoC) is on its way to becoming the first major central bank to issue its own digital currency. Though the regulator was rumored to issue CBDC last year, its launch this year is expected.
Meanwhile, Facebook’s push for Libra also forced the regulators to think about regulations and the utilities of digital currencies seriously.
As Finance Magnates reported today, multiple central banks from Asia and Europe initiated a joint study to issue digital currencies.
“I see the interest in rapidly advancing the issuance of at least one central bank digital currency (CBDC) in order to be the leading issuer globally & get the benefits associated with providing an exemplary CBDC.” – Bank of France Governor
The Great Currency Race has begun!
— Pomp 🌪 (@APompliano) December 4, 2019