Monetary authorities in Hong Kong and Thailand are planning to introduce a digital currency that will facilitate cross-border financing. This would be used to ensure quicker payments when funds are being transferred between the two countries, which will prove advantageous as the bilateral trade stood at $19.6 billion last year.Thai Central banks and the Hong Kong Monetary Authority are working together to explore their options in digital assets supported by blockchain, with plans to issue and distribute a two-tier digital token. This prototype would take force in two steps, with the token being released, followed by its distribution by banks to corporate customers. Corporate customers can then use the digital tokens to settle payments across the border with other companies or banks. In similar news, the Bank of Thailand is experimenting with a central bank digital currency of its own, which could see involvement from banking institutions such as HSBC.
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