The Hong Kong financial sector is fully sold on streamlining traditional assets through the use of digital tokens. The Hong Kong Monetary Authority (HKMA), the de facto central bank, has launched Project Ensemble Sandbox in a hall on the 56th floor of the International Finance Centre.
Hong Kong adopts digital assets for financial growth
HKMA has a slogan, “Tokenising Together,” with Eddie Yue, the HKMA’s chief executive, saying, “Tokenization has the potential to make financial transactions more efficient, more transparent and less costly.”
Yue said the launch “marks a significant milestone in our journey towards creating a dynamic and innovative digital asset ecosystem in Hong Kong.”
Financial institutions will explore transactions with tokenized assets per plan to evaluate the technology’s effectiveness. The pilot includes different themes, prominently featuring tokenized bond and fund transactions.
The innovation is expected to boost expediency and lower transaction costs. Most importantly, the Bank of China, HSBC, and Standard Chartered are taking part in Hong Kong’s new financial direction. All three banks issue Hong Kong dollar notes. Microsoft and Alibaba Group Holding affiliate Ant Digital are also participating.
HashKey Group has been authorized to provide support for asset liquidity. Should the tokenization project succeed, the HKMA will prepare to issue a central bank digital currency (CBDC).
Yat Siu, the co-founder and chairman of Animoca Brands weighed in saying, “To tokenize something is to provide a way of measuring the value in this world.”
Siu believes that Hong Kong’s pivot into tokenization reflects China’s ambition to move away from the U.S. dollar. He adds, “China believes the dollar has been weaponized against other countries that do not follow the Western order.”
He claims that Chinese officials are using Hong Kong as a strategic front to undermine the dollar’s dominance in digital finance.
Credit: Source link
