Hong Kong Joins Forces with Saudi Arabia on Payments and Tokens
Hong Kong is working on the possibilities to broaden its financial partnership with Saudi Arabia. The respective collaboration targets the agreements dealing with payments and tokenization infrastructure. In this respect, the Saudi Central Bank (SAMA) has partnered with the Hong Kong Monetary Authority (HKMA). Both organizations held a bilateral meeting on the 26th of July to fortify the exchange of economic services between both countries.
Saudi Arabia and Hong Kong Join Forces to Enhance Their Tokenization and Payments
As included in the meeting framework, the SAMA and HKMA discussed the endeavors like the development of financial infrastructure, operations of the open market, sustainable development, and market connectivity. The central banks of both jurisdictions additionally signed a memorandum of understanding (MoU). It focuses on promoting mutual discussions concerning financial innovation.
As per a formal joint announcement, Saudi Arabia and Hong Kong’s authorities also availed themselves of the chance to share expertise concerning the areas such as supervision technologies, payment infrastructure, and tokenization. Eddie Yue, the chief executive of HKMA, remarked on this. The executive stated that there is considerable space for collaboration between Hong Kong and Saudi Arabia.
The executive added that both jurisdictions can operate collaboratively in the sectors of fintech, sustainable development, trade, and economy. On the other hand, Ayman Alsayari (the governor of the SAMA) also commented on the respective move. As per the governor, the MoU will promote the consistent advancement of the collaboration between both Hong Kong and Saudi Arabia.
In addition to this, the governor added, this will also assist them in further developments. The declaration does not identify if the development would take into account any mutual endeavors dealing with crypto assets such as Bitcoin, irrespective of the fact that the HKMA recently permitted retail investors to carry out crypto trading.
On the contrary, the Saudi Arabian authorities have not been speaking on any strategy to promote cryptocurrency in the previous years. They just cautioned against the chief crypto token Bitcoin, saying that it was not recognized by the legitimate platforms operating within the jurisdiction of the country.
The government in Hong Kong is already taking part in many inter-jurisdictional tokenization endeavors. Back in June, BOCI (the investment bank sub-branch of the Bank of China) issued nearly $28M tokenized security within the jurisdiction of Hong Kong. The respective tokenized security was minted on the blockchain of Ethereum.
Hong Kong Authorities Keep on Making Efforts to Attract Big Players
The project took benefit from GS DAP (the tokenization protocol operated by Goldman Sachs) as well as cash tokes denoting claims on the native currency of Hong Kong. The proactive regulation and commitment shown by Hong Kong to promote innovation can potentially attract additional players from the international markets.
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