Hong Kong and Thailand digital currency joint report is expected to shed light on how states can go digital. Thailand and Hong Kong central banks have announced their research report on state-sponsored digital currency. The joint report, scheduled to be launched in early 2020, will explore the various facets associated with cryptocurrencies and their implementations.
The announcement was made by the ‘Hong Kong Monetary Authority’ (HKMA). It mentions that the Bank of Thailand (BoT), along with the HKMA, the collaboration aims to study the various impacts of launching a central bank digital currency. The research will unearth the numerous benefits as well as risks associated with such a venture-backed by the state.
Exploring the facets of a central bank cryptocurrency
Globally, many central banks are exploring the idea of having a state-backed cryptocurrency to secure their future financial requirements. However, detailed research into this realm is still inadequate. The BoT and HKMA partnership wish to break down this barrier. Their joint project Inthanon and LionRock, also reflect their commitment to this aim.
Both the organizations have been exploring technologies and researching on ways to achieve payment-vs-payment (PvP) system for regional banks based in Thailand and Hong Kong. This project involves having a central bank digital currency at the center of the operations.
Hong Kong and Thailand digital currency can create a bridge
Earlier, HKMA also collaborated with People’s Bank of China (PBoC) to research on digital currencies. However, HKMA clarified that they are exploring the institutional use of digital currencies. The retail usage is not yet researched upon in Hong Kong and Thailand digital currency report.
The research will focus more on how to use digital currencies for corporate settlements, securities, and interbank financial requirements. The domestic consumers are not yet going to be a part of this research team’s work. It is worthwhile to note here that HKMA’s LionRock is under research since 2017.
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