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Hong Kong welcomes set-up of innovation hub

The Hong Kong Government, on behalf of the Hong Kong Monetary Authority, released a press statement notifying the public that an international financial institution owned by central banks, on 30 June 2019 announced that it will establish a BIS Innovation Hub in Hong Kong.

The aim of the hub is to foster international collaboration on innovative financial technology within the central banking community. One of the Hub Centres will be set up in Hong Kong. The Hong Kong Monetary Authority (HKMA) welcomes this development.

The Chief Executive of the HKMA stated that the agency is pleased to see that the financial institution will set up a Hub Centre in Hong Kong. This is a clear recognition of Hong Kong’s leading role in the development and application of innovative financial technologies and its vibrant fintech ecosystem.

As a member of the BIS, the HKMA welcomes the establishment of the Hub and is fully supportive of its work. It will work closely with the Hub to contribute to its research projects on technology and innovation to foster better collaboration among central banks and the wider community.

The role of the Hub will be to identify and develop in-depth insights into critical trends in technology affecting central banking; develop public goods in the technology space geared towards improving the functioning of the global financial system, and serve as a focal point for a network of central bank experts on innovation.

The BIS is an international financial organisation with a membership of 60 shareholding central banks. Its mission is to serve central banks in their pursuit of monetary and financial stability, to foster international cooperation in those areas and to act as a bank for central banks.

The financial organisation also announced plans to establish Innovation Hubs in Switzerland and Singapore.

The Chairman of the Board of Directors of the organisation noted that the establishment of the Innovation Hub will enable central banks to extend their existing collaboration with a view to identifying relevant trends in technology, supporting these developments where this is consistent with their mandate, and keeping abreast of regulatory requirements with the objective of safeguarding financial stability.

The role of the Hub will be to identify and develop in-depth insights into critical trends in technology affecting central banking; develop public goods in the technology space geared towards improving the functioning of the global financial system, and serve as a focal point for a network of central bank experts on innovation.

The Chair of the Economic Consultative Committee, welcomed the move, highlighting that central banks will have a major role to play to maintain an environment that enhances the effectiveness of innovation, which is predominantly driven by the private sector.

A new economy is emerging. It is being driven by changes in technology, demographics and the environment. The Innovation Hub will foster collaboration between central banks and, by extension, help the private sector to fully realise these major opportunities.

For now, the three Hub Centres will be set up in Switzerland, Hong Kong and Singapore, where the set-up and ongoing work will be carried out in close collaboration and with the support of the host central banks: the SNB (Swiss National Bank), HKMA (Hong Kong Monetary Authority), and MAS (Monetary Authority of Singapore), respectively.

Additional Hub Centres across the Americas and Europe will be added as part of the second phase of implementation.

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