The Hong Kong Monetary Authority (HKMA) and the Bank of Thailand (BOT) announced on Wednesday (May 15) that they have inked a deal to collaborate to promote financial innovation.
According to a press release covered by Finextra, the memorandum of understanding (MoU) was signed on May 12, 2019 between Norman Chan, chief executive of the HKMA, and Veerathai Santiprabhob, governor of BOT, in Basel. Under the MoU, the HKMA and BOT will work together to come up with innovative businesses, share information and experiences and jointly develop projects.
“The HKMA and BOT are longtime partners in a number of important financial initiatives. Today, I am pleased to have signed a FinTech MoU with Governor Santiprabhob to take our collaboration to the next level,” Chan said in the press release. “The signing of this MoU not only demonstrates our mutual interests in developing collaborative FinTech initiatives, but also underlines our ongoing efforts in cross-border collaboration between central banks in promoting innovation and enhancing experience sharing. The HKMA looks forward to working together with BOT and seeing the positive outcome from our joint effort.”
According to HKMA and BOT, one potential area of collaboration is a joint research project on central bank-issued digital currency. The two authorities could apply the knowledge and experience they have gained from their own research projects to further the initiative.
“I could not agree more with Chief Executive Norman that this MoU is a significant step in the FinTech collaboration between the BOT and the HKMA. The synergies from our collaboration will lead to productive outcomes that will benefit us all,” said Santiprabhob in the same press release. “I believe there is huge potential to enhance the quality of financial services by leveraging on technological advancement, and it is our responsibilities as regulators to create an ecosystem that is conducive to innovations. The BOT looks forward to working closely with the HKMA in turning great ideas into innovative, practical solutions that will ultimately improve people’s lives.”