wallet operators are now developing new cross - border payment channels, making use of dlt in some instances, that would result in faster and cheaper services for users. like several overseas central banks, the hkma is studying the technical feasibility and merit of central bank issued digital currency ( cbdc ). it is still early days, but it seems cbdc offers greater potential in wholesale than the retail area in terms of payment and settlement, especially in the cross - border context. however, ( f ) considerably more research work is needed to analyse the relative merit of cbdc over the existing electronic or digital forms of payment in which central bank funds are used, cleared and settled centrally. it is also necessary to assess the likely impact cbdc has on the monetary policy transmission mechanism. we will share with the public the findings of our research work in due course. 8. ladies and gentlemen, we are now in an exciting era in which fintech, including dlt, is advancing in a speed that was unthinkable 10 years ago. all of us, industry practitioners and regulators alike, must try our best to keep up with the pace or else we risk being left behind. however, in embracing new technology and innovation, we must also guard against the risk of overlooking the nature of the financial transactions and the risks that are inherent in these transactions under the pretext of technological advancement. crypto - assets are one such example in which the use of new technology does not alter the nature or risks of the products or the transactions. 9. i hope you will find my remarks today helpful as an elucidation of the hkma ’ s stance on crypto - assets and on digital payments and settlement. one final word of caution though. notwithstanding what i have said today about crypto - assets, i won ’ t rule out one day new technology emerges in such a way that would address the kyc or aml concerns that are present in the current generation of crypto - assets. we just need to keep an open mind and stand ready to learn and adapt to new technology and trends. thank you for your attention. 4 / 4 bis central bankers'speeches

joseph yam : changes in asia – a brief look at the dynamics within the region statement by mr joseph yam, chief executive of the hong kong monetary authority, and alternate governor for hong kong, china in the asian development bank, at the 40th asian development bank annual meeting, kyoto, 6 may 2007. * * * i would like to thank the government of japan and the people of kyoto for their hospitality in hosting this year ’ s annual meeting of the asian development bank ( adb ). i would also like to congratulate mr kuroda on his re - election as the president of the adb. this year marks the 40th anniversary of the adb. over the past four decades, asia has achieved remarkable development, particularly in terms of economic growth and the reduction of poverty, and clearly the adb has contributed significantly to this achievement and has established itself as a regional financial institution of strategic importance. asia has undergone remarkable changes too over the past four decades and in many ways, in particular in terms of the economic dynamics within the region, and between the region and the rest of the world. changes have been particularly marked in the past decade or so, under the influence of globalisation and the revolution of information technology. there has, for example, been rapidly increasing trade integration, encouraged obviously by the high degree of freedom in international trade, and consequently increasing economic interdependence within the region. changes always present new challenges and opportunities. and for the new challenges to be met and the new opportunities to be exploited, there is often the need for new approaches and new initiatives, at both the national and international levels. there is a view, for example, that trade integration in the region has not been adequately served by financial integration, given restrictive controls on capital mobility still being practised in selected jurisdictions. as a result there is some doubt as to whether the long term development potential of the region has been maximised and whether the rapid economic growth the region is experiencing is sustainable. there is further concern from the point of view of the maintenance of monetary and financial stability. new approaches and new initiatives are indeed necessary to promote greater financial integration in the region. i am sure there are many other areas concerning development of the region in which new approaches and new initiatives may be desirable. being a regional financial institution of strategic importance, it is obvious that the adb has a significant role to play. i would argue that this should be a role of increasing significance, or even a pivotal role