Hong Kong government aims to provide tokenized green bonds to institutional investors, according to local media. A number of leaders discussed future plans for technology, digital assets, and the economy, with a focus on these green bonds among them.
Hong Kong financial secretary, Chen Maobo, claims that the government is involved in a number of cryptocurrency trial programs. One of these involves the government selling institutional investors tokenized green bonds. It’s another step in the right direction for the area, which has invested a lot of time and energy into testing out decentralized technologies in pilot projects.
The Securities Regulatory Commission is striving to control this asset class. According to Chen Haolian Deputy Secretary for Financial Affairs and the Treasury. In order to make decisions, it is specifically taking into account the discussion and public participation guidelines.
Maobo claims that the Hong Kong administration has recently finished drafting the laws establishing a licensing system. This system’s capabilities would be focused on anti-money laundering, countering terrorist financing, and investor protection. It is also putting controls in place for web3, which is possibly the most important and is something it has already acknowledged.
$5.75 billion worth of green bonds being offered, makes it the largest ESG bond sale on the Asian continent. It has apparently drawn over US$36 billion in equivalent orders from international investors since news of the auction took over the airwaves. Investors who had not participated in the government’s earlier green bond issuances were able to engage.
The government divided the issuing of green bonds into different groups. One of the categories calls for a $1 billion loan with a 5-year tranche at 4.585%. There is also a US$1 billion category, which includes tranches with maturities ranging from 10 years at 4.672% on up.
Hong Kong Legislator Wishes to Convert CBDC Into a Stablecoin Based on DeFi
Hong Kong authorities are looking for new designs for a central bank digital currency (CDBC). The government now proposing to issue a CBDC in the form of a stablecoin.
Wu Jiezhuang, a member of the Hong Kong Special Administrative Region Legislative Council, believes that converting the Hong Kong digital dollar (e-HKD). The conversion into a stablecoin would benefit the adoption of new technologies such as Web3.
On an interview with China Blockchain News, Wu Jiezhuang stated that turning e-HKD into a stablecoin. It will have the ability to effectively solve the dangers connected with virtual assets in Web3. A design like this for the Hong Kong digital dollar, in the legislator’s opinion, would assist government officials win investors’ confidence in the Web3.
The collapse of multiple stablecoin projects in 2022, had a ripple effect on the cryptocurrency market. Wu Jiezhuang stated that “the stablecoins that are currently available in the market are all issued by some private enterprises and are not subject to government supervision.”
Hong Kong Will Offer a Licensing Framework for Companies That Offer Digital Assets
In the recent years, Hong Kong has seen the emergence of numerous blockchain-related enterprises. They including the exchanges Crypto.com, BitMEX, Bitfinex, OSL, and others. According to blockchain analytics company Chainalysis, the city received $60 billion in inbound cryptocurrency between July 2020 and June 2021.
Some cryptocurrency businesses have recently relocated to foreign markets due to the regulatory uncertainties in Hong Kong. However, in response to the failure of FTX, the Hong Kong Securities and Futures Commission (SFC) intends to set up legal standards for regional cryptocurrency exchanges.
Paul Chan, the Hong Kong Monetary Authority’s Financial Secretary, spoke about the region’s ongoing initiatives. The initiative is to support technology, digital assets, and its economy. The executive claimed that the government has finished the legislative work. Necessarily to establish a licensing system for companies offering digital asset services.
Notably, the legislative effort enables these providers to function in accordance with requirements for investor protection, anti-money laundering, and anti-terrorist funding.
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