Hong Kong to Accelerate Bank’s Blockchain Adoption
The HKMA has introduced the “Supervisory Incubator for Technology” (DLT) to help banks safely adopt blockchain-based solutions and maximize their potential. This initiative, announced on January 8, aims to support banks in adopting blockchain technology.
According to Deputy Chief Executive of HKMA, Arthur Yuen, the banking industry is constantly evolving, and it is crucial to provide an environment conducive to innovation. The program is crucial in developing secure, efficient, and impactful DLT-based banking systems.
The incubator consists of two components. The first component offers direct support to banks, including access to a central bank advisory team to assist with live trials.
These tests will help evaluate risk management systems before launching DLT-driven services, with a focus on tokenized deposits initially.
The second component encourages collaboration among industry players by facilitating sharing of best practices, conducting research, and providing supervisory guidance to streamline the integration of blockchain across the banking sector.
