Hong Kong to issue new DLT adoption guidelines for banks [Video]

Hong Kong will issue new guidelines for commercial lenders seeking to adopt distributed ledger technology (DLT) in the coming weeks, a top official at the city-state’s central bank has confirmed. The Hong Kong Monetary Authority (HKMA) is responding to several inquests by local banks seeking to adopt the technology.

Raymond Chan, the executive director of banking supervision at the HKMA, spoke recently at a blockchain event and pledged the regulator’s support for DLT adoption by the city’s banks.

The event was organized by the HKMA alongside the Securities and Futures Commission and the Insurance Authority, the three primary regulators of Hong Kong’s world-leading financial services industry.

DLT is a “paradigm-shifting innovation” that local banks must leverage to compete with their global rivals in financial hubs like London, Singapore, and New York, Chan told the attendees. The technology will enhance efficiency through its programmability while ensuring cutting-edge security. Blockchain also supports automation through smart contracts.

“As a growing number of banks are approaching us to …