The chief executive of Hong Kong’s central bank seemed to have an optimistic outlook on the future of decentralized technology in the wake of the current crypto pandemic; however, the governor of the central bank of Korea had his concerns on the matter.
At this very moment, central bank governors from around the world are meeting in Thailand to discuss the role of central banks in this rapidly advancing era of financial technology.
The Bank of Thailand (BOT) and the Bank for International Settlements will act as co-hosts while they are present at the conference (BIS).
A panel discussion on digitized monetary systems was attended by Eddie Yue, chief executive of the Hong Kong Monetary Authority; Changyong Rhee, Governor of the Bank of Korea; Adrian Orr, Governor of the Reserve Bank of New Zealand; and Cecilia Skinsley, from the Bank for International Settlements. Panelists examined the growing popularity of digital assets and central bank digital currency (CBDC), as well as the dangers that are associated with newly established technology.
The chairman of the Hong Kong Monetary Authority highlighted the innovations and benefits that blockchain technology brings, as well as the potential implications it would have for central banks. He also highlighted the conceivable effects that blockchain technology would have on monetary policy.
According to Yue, CBDCs and stablecoins may eventually offer a form of transaction that is not only more efficient but also more profitable in the long run.
However, he noted that every new piece of technology has its own unique set of dangers, whether they are innovation risks or operational risks, and that these risks are unavoidable.
Yue noted that blockchain is by its very nature a decentralized technology; as a result, it is much more difficult to mitigate the risks associated with chain activities.
Bank of Korea Governor Changyong Rhee has expressed some skepticism regarding possible uses of blockchain technology in the future, especially in the financial sector. This is in light of the recent crypto outbreaks.