Hong Kong and Saudi Central Banks Sign MoU to Boost Financial Innovation

Hong Kong Crypto
Summary: The Hong Kong Monetary Authority (HKMA) and the Saudi Central Bank (SAMA) have signed a Memorandum of Understanding (MoU) to collaborate in the financial sector. It aims to enhance mutual cooperation and exchange of information and expertise in financial innovation and Fintech.

The Hong Kong Monetary Authority (HKMA) and the Saudi Central Bank (SAMA) have agreed to work more closely together in the financial sector by signing a Memorandum of Understanding (MoU). This comes after the HKMA and the UAE central bank collaborated together on May 30 to boost the banking and virtual currency space and regulations.

Enhanced Mutual Cooperation

Financial infrastructure development, open market operations, market connectivity, and sustainable growth were among the topics covered at a meeting between the Saudi and Hong Kong central banks in the kingdom’s capital, Riyadh.

Eddie Yue, Chief Executive of the HKMA, stated:

“The MoU, in particular, will further enhance mutual cooperation as well as exchange of information and expertise between the SAMA and the HKMA in financial innovation and Fintech. We look forward to working with the SAMA to promote investment and financial market connectivity between the Middle East and Asia.”

To further explore and innovate in areas including supervision technologies (Suptech), tokenization, and payment infrastructure, Governor of the SAMA Ayman Alsayari and Chief Executive of the HKMA Eddie Yue signed an MoU.

Major Crypto Push

Moreover, knowledge exchange in financial innovation and Fintech will be an integral aspect of the central banks’ efforts across a number of fronts, including the monetary policy framework and sustainable finance.

A crypto licensing framework and virtual asset rules were recently established by Hong Kong in an effort to establish the region as a global cryptocurrency powerhouse. Also, Hong Kong’s crypto-friendly rules and growing demand have attracted a number of cryptocurrency exchanges and businesses.

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Now that Bitcoin, Ethereum, and other cryptocurrencies are available for retail investment in Hong Kong, the region’s government and central bank are trying to develop the crypto and CBDC sectors.

Haris Rauf