{"id":438565,"date":"2022-04-28T06:14:43","date_gmt":"2022-04-28T03:14:43","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/hong-kong-watchdog-warns-stablecoins-could-undermine-hkd-in-cbdc-paper\/"},"modified":"2022-04-28T06:14:43","modified_gmt":"2022-04-28T03:14:43","slug":"hong-kong-watchdog-warns-stablecoins-could-undermine-hkd-in-cbdc-paper","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/hong-kong-watchdog-warns-stablecoins-could-undermine-hkd-in-cbdc-paper\/","title":{"rendered":"# Hong Kong watchdog warns stablecoins could undermine HKD in CBDC paper"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a4e08289e68a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a4e08289e68a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/hong-kong-watchdog-warns-stablecoins-could-undermine-hkd-in-cbdc-paper\/#%E2%80%9D_Hong_Kong_watchdog_warns_stablecoins_could_undermine_HKD_in_CBDC_paper_%E2%80%9C\" >&#8221; Hong Kong watchdog warns stablecoins could undermine HKD in CBDC paper &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Hong_Kong_watchdog_warns_stablecoins_could_undermine_HKD_in_CBDC_paper_%E2%80%9C\"><\/span>&#8221; Hong Kong watchdog warns stablecoins could undermine HKD in CBDC paper &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvM2Q5ZGFmMGEtMDI5ZS00NjViLWIzZjMtZTkxODFjMTdhYWU5LmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-2a0745c6>The Hong Kong Monetary Authority (HKMA) has warned that stablecoins could undermine the Hong Kong dollar in a just released discussion paper about its retail central bank digital currency, e-HKD.\u00a0<\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">The HKMA today issued a discussion paper, outlining the policy and design issues involved in the introduction of e-HKD, and encourages the public and industry to participate in the consultation and share their views. Find out more: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/GndjuZ2Pay\">https:\/\/t.co\/GndjuZ2Pay<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/hRz2noD0Ps\">pic.twitter.com\/hRz2noD0Ps<\/a><\/p>\n<p>\u2014 HKMA \u9999\u6e2f\u91d1\u878d\u7ba1\u7406\u5c40 (@hkmagovhk) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hkmagovhk\/status\/1519246684219400193?ref_src=twsrc%5Etfw\">April 27, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><br \/>\nMany in the crypto industry believe that interest in developing central bank-issued digital currencies has been in <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.mckinsey.com\/industries\/financial-services\/our-insights\/cbdc-and-stablecoins-early-coexistence-on-an-uncertain-road\">response<\/a> to the rise of private-sector stablecoins. This discussion paper <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/download-scripts-themes-apps\/\" data-internallinksmanager029f6b8e52c=\"9\" title=\"Download Scripts &amp; Themes &amp; Apps\" target=\"_blank\" rel=\"noopener\">app<\/a>ears to confirm that view.<\/p>\n<p>\u201cWith continued developments in stablecoins, it cannot be ruled out that a popular stablecoin may eventually emerge,\u201d wrote the HKMA as part of the \u201ce-HKD:  A Policy and Design Perspective\u201d discussion <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.hkma.gov.hk\/eng\/news-and-media\/press-releases\/2022\/04\/20220427-3\/\">paper<\/a> released on Wednesday.<\/p>\n<blockquote><p>\u201cIn a scenario where the use of these stablecoins becomes widespread\u2026 the role of the domestic currency as the single unit of account could be undermined.\u201d<\/p><\/blockquote>\n<p>The authority also highlighted risks that such stablecoins could undermine payment integrity due to operational or financial failures, or allow for greater ease of capital flight during a financial crisis period, which would undermine the control of central banks over the local economy. <\/p>\n<p>The HKMA first announced its plans to study a retail-focused central bank issued digital currency in June 2021 as part of its \u201cFintec 2025\u201d strategy, however, the authority has also been studying to merits of issuing a wholesale CBDC since 2017.<\/p>\n<p>Retail CBDCs are targeted toward the <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/general\/\" data-internallinksmanager029f6b8e52c=\"3\" title=\"General\" target=\"_blank\" rel=\"noopener\">general<\/a> public and used for everyday transactions. Wholesale CBDCs are issued only to financial institutions and are aimed at making their transactions faster, less expensive, and more secure. <\/p>\n<p>The monetary authority has made no commitment to introducing a digital currency, with the most recent discussion paper merely inviting industry leaders and consumers to provide additional feedback on potential challenges and benefits of the proposed rCBDC.<\/p>\n<p>It also asks for feedback on certain design considerations such as an appropriate rCBDC issuance mechanism, interoperability across large-value and retail payment systems, privacy and data protection, legal considerations, private sector participation, and potential use cases. <\/p>\n<p>Across the border in mainland China, the central bank-issued digital currency continues to pick up steam. Earlier this month, the People\u2019s Bank of China (PBOC) said it will be expanding its digital yuan trial to six more cities, adding to the existing 10 major pilot cities already undergoing trials. <\/p>\n<p><strong><em>Related: Fitting the bill: US Congress eyes e-cash as an alternative to CBDC<\/em><\/strong><\/p>\n<p>Meanwhile, the Philippines government on Wednesday announced it will be pursuing its own pilot project for a wholesale central bank digital currency, called Project CBDCPh, which it envisions will be used for cross-border payments, equity securities payments, and intraday liquidity facilities (ILF).<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"crypto_biz\"><\/template><\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/hong-kong-watchdog-warns-stablecoins-could-undermine-hkd-in-cbdc-paper\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Hong Kong watchdog warns stablecoins could undermine HKD in CBDC paper &#8220; The Hong Kong Monetary Authority (HKMA) has warned that stablecoins could undermine the Hong Kong dollar in a just released discussion paper about its retail central bank digital currency, e-HKD.\u00a0 The HKMA today issued a discussion paper, outlining the policy and design&#8230;<\/p>\n","protected":false},"author":1,"featured_media":438566,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMDQvM2Q5ZGFmMGEtMDI5ZS00NjViLWIzZjMtZTkxODFjMTdhYWU5LmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[74894,75022,79786,75159,75493,43256,70934],"class_list":["post-438565","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-blockchain","tag-central-bank","tag-digital-asset","tag-digital-currency","tag-stablecoin","tag-hong-kong","tag-regulation"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/438565","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=438565"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/438565\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/438566"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=438565"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=438565"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=438565"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}