Two central bank governors from the Bank of Thailand (BOT) discussed the future of decentralised finance at a recent event in Thailand.
Representatives from the Bank of Thailand (BOT) and the Bank for International Settlements (BIS) hosted the event.
Panel talks featured Eddie Yue, CEO of the Hong Kong Monetary Authority, Bank of Korea governor Changyong Rhee, and Reserve Bank of New Zealand governor Adrian Orr, and BIS Innovation Hub chief Cecilia Skingsley.
The panel explored central bank digital currencies (CBDCs) and other digital assets. Yue kicked off the talks stating thta stablecoins and CBDCs offered greater, more cost effective benefits for conducting transactions.
Despite this, risks still posed problems for any new financial technology, he added. Continuing, he stataed that blockchain’s decentralised nature created greater challenges for on-chain security. Later, he urged financial regulators to focus on off-chain activities.
Speaking to the audience, he explained that regulators could start by monitoring off-chain activities “like regulating virtual asset exchanges.”
He added: Hong Kong will soon introduce not just [anti-money laundering] aspects but also investor protection.”
The Hong Kong government aimed to create further regulations to build global standards on how to regulate stablecoins, he concluded.
A New Hope for Crypto?
Hitting back, Rhee sad ihe did not see an optimistic future with namely monetary blockchain technologies due to the ongoing FTX and other crises harming the industry.
He cautioned whether the market saw the “benefit of the technological development recently,” citing the ongoing FTX collapse.
Concluding, he said: “I was more positive before, but after seeing the Luna, Terra, and now the FTX issues. I don’t know [if] we will see the real benefit of this new technology, at least for monetary policy.”
The news comes after ther BOT-BIS Conference took place on Friday at the Bank of Thailand on the 80th anniversary of the former bank.
Global leaders gathered to discuss crucial developments among central banking institutions. Key topics included inflation, the global economic crisis, emerging technologies, fintech, and climate change, among others.
