HKU and HKMA sign MOU. (From left) Professor Chen LIN; Mr Colin POU, Executive Director (Financial Infrastructure), HKMA; Professor David SROLOVITZ and Professor Simon YOUNG
The University of Hong Kong (HKU) has collaborated with the Hong Kong Monetary Authority (HKMA) in the newly established Central Bank Digital Currency (CBDC) Expert Group. Alongside four other local universities, HKU signed a Memorandum of Understanding (MoU) with HKMA today (October 20), marking a significant step in fostering collaboration and knowledge exchange on CBDC research and development.
Five faculty members from HKU joined the CBDC Expert Group. They included Professor Chen LIN, Chair of Finance, Stelux Professor in Finance and Dr. Yang YOU, Assistant Professor from HKU Business School; Professor Siu-Ming YIU, Deputy Head of Department of Computer Science and Dr. John Tsz-Hon YUEN, Assistant Professor of Department of Computer Science from the Faculty of Engineering; Professor Douglas ARNER, Kerry Holdings Professor in Law from the Faculty of Law.
The HKU members collaborated with other members of the CBDC Expert Group and contributed their expertise to two white papers. The first paper addressed privacy issues associated with CBDCs, examining the characteristics of various privacy-enhancing technologies (PETs) and their potential integration into a CBDC platform. The second paper explored the interoperability of CBDC platforms based on different frameworks, technologies, and implementations, including blockchain technologies and associated standards and regulatory issues.
The CBDC Expert Group aims to unite academic experts from diverse disciplines, such as business, computer science, economics, finance, and law, whose expertise is relevant to HKMA's work on CBDCs.
Professor Chen LIN, Associate Vice-President (Faculty Affairs), Associate Dean (Research and Knowledge Exchange) of HKU Business School said: "The establishment of the CBDC Expert Group by the HKMA represents a momentous advancement in the financial landscape of Hong Kong. CBDCs are positioned to assume a pivotal role in shaping the city's financial future. These innovative digital currencies are set to foster profound financial development while concurrently upholding the stability of Hong Kong's intricate financial ecosystem. As we move forward in this digital era, CBDCs stand as a cornerstone for modernizing and strengthening the financial foundations of Hong Kong, propelling it further on its journey as a global financial hub."
Professor David SROLOVITZ, Dean of Engineering, expressed his enthusiasm for the collaboration and said: "Technologies form the foundation of a CBDC platform. Our experts in Computer Science and FinTech are glad to join The CBDC Expert Group to explore how our advanced technologies can help Hong Kong build a leading CBDC platform to foster the city's role as an international financial centre.
Professor Simon YOUNG, Associate Dean (Research) of the Faculty of Law, highlighted the importance of addressing legal and regulatory challenges and said: "The governance, legal and regulatory issues related to central bank digital currencies are novel and proving to be exceptionally challenging in both their domestic and cross-border dimensions. While we strive to make the best use of new technologies, we must ensure that the basic norms of contract, privacy and criminal laws, amongst others, are maintained."
