Despite its flaws, the cryptocurrency industry is likely to play a key role in the financial system of the future, says the chairman of the Hong Kong Monetary Authority (HKMA), yes.
Hong Kong cites benefits of crypto.
As Reuters report, the technology that underpins most cryptocurrency projects can be adapted to the general financial system, according to Yue. However, he called for industry regulation to avoid risky associations. He took for example the recent collapse of the Terra ecosystem. (MOON) which resulted in significant losses.
“Despite the incident of Terra-MoonI thought the crypto and the Challenge will not say – even if they can be curbed – because technological and commercial innovation are the basis of these developments that are likely to be important for our future financial system”.
Yue’s views are in line with the longstanding friendly stance of the MORE towards cryptocurrencies. In January 2022, the agency released a statement indicating that the entity is willing to leverage the benefits of financial innovation while acknowledging the risks involved.
The agency recently granted more attention to the regulation of stablecoinsespecially after the Collapse of the Terra ecosystem. In the bank’s recent discussion paper on its retail central bank digital currency (CBDC) e-HKDPLUS he warned that stablecoins could weaken the country’s dollar. I noticed MORE than if a Seoul stablecoin becomes more popular, the local currency will be severely weakened.
G20 consider a unified regulatory body on the crypto
The Financial Stability Board (FSB) is an international body. It actually monitors the financial system and comes up with rules to prevent financial crises. As part of his mission, he plans to make proposals to regulate cryptocurrencies by the end of the year.
Australia and Hong Kong Are among the countries that lead the standard crypto regulatory framework. ANDnot besides, hea Australian Central Bank promises regulated private cryptocurrencies.
Lords of the Meeting of G20the governor of the RBA, Philip Lowecast are backed by privately issued cryptocurrencies only in a well-regulated environment. According Loweprivate cryptocurrencies can be better than CBDC.
“If these tokens are to be widely used by the community, they must be state-backed or regulated just as we regulate deposits. banks”