Speaking during the G20 financial officials meeting, Yue noted that the technology powering most cryptocurrency projects could be adapted to suit the general financial system, Reuters reported on July 17. However, Yue called for regulation of the sector to avoid related risks like the recent Terra (LUNA) ecosystem crash that resulted in significant losses.
Hong Kong embracing crypto benefits
Yue’s sentiments align with HKMA’s long-standing friendly approach to cryptocurrencies. In January 2022, the institution released a statement indicating that the entity is open to embracing the benefits of financial innovation while recognising the risks involved. The institution has recently focused more on the stablecoin regulations, especially after the Terra ecosystem crash. In the bank’s recent discussion paper about its retail central bank digital currency (CBDC), e-HKD, HKMA warned that stablecoins could undermine the country’s dollar. HKMA noted that if one single stablecoin emerges more popular, the local currency will be significantly undermined.
Australian central bank promotes regulated private cryptocurrencies
Furthermore, during the G20 session, Australian central bank governor Philip Lowe expressed support for privately issued cryptocurrencies only in a well-regulated environment. According to Lowe, private cryptocurrencies might be better than CBDCs. Both Australia and Hong Kong are among the countries leading the charge towards a standard crypto regulation framework.
