Collaborative Efforts Between Hong Kong and UAE Central Banks to Boost Oversight of Digital Currency and Virtual Assets
In Brief
The cooperation between the HKMA and the UAE’s Central Bank is focused on increasing oversight of digital currencies and the broader market landscape.
The Hong Kong Monetary Authority (HKMA) and the United Arab Emirates' Central Bank (UAE) have launched a joint working group. This collaboration is set to explore aspects such as market connectivity, advancements in central bank digital currencies, infrastructure development, the digital transitions of central banks, and regulations surrounding the growth of virtual assets.
The Nexus of East and West
Earlier this year, the Hong Kong John Lee, the Chief Executive of the Special Administrative Region, recently led a business delegation to the Middle East. This visit aimed to strengthen Hong Kong’s financial and trading relationships with the region. In this regard, the HKMA has actively engaged with financial regulators, institutions, and businesses in both the UAE and Saudi Arabia.
During a recent interview, Yu Weiwen The head of the HKMA stressed the strategic alignments resulting from Hong Kong’s extensive customs procedures. This includes the formation of the previously mentioned \"bilateral working group\" with the UAE’s Central Bank. Additionally, both institutions have signed a memorandum of understanding, affirming their dedication to exploring innovative financial domains together.
Building on this momentum, the HKMA is set to expand its presence into Southeast Asia, with significant meetings planned with local central banks and key institutional investors. Coinciding with its 30th-anniversary celebrations, the HKMA will host the International Investment Summit for Financial Leaders while inaugurating the Asia-Pacific Representative Office in Hong Kong.
Three Decades of HKMA
This year marks the 30th anniversary of the HKMA, HKMA’s reflecting on its journey filled with challenges and significant achievements. Yu Weiwen fondly recalled the authority's early days, which began without a proper office, highlighting the difficulties faced along the way. He pointed out critical financial events, including the 1998 attempt to devalue the Hong Kong dollar and the notorious 2008 collapse of Lehman Brothers.
Yu Weiwen expressed the HKMA’s unwavering pursuit of financial stability and its commitment to fostering innovation. He remarked on the numerous challenges the organization has overcome, emphasizing how these experiences have equipped them for future hurdles. \"We maintain a youthful spirit and are excited about financial progress, always ready to embrace new financial landscapes,\" Yu remarked.
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