The Hong Kong Monetary Authority (HKMA) and the Saudi Central Bank (SAMA) have signed a Memorandum of Understanding (MoU) to conduct joint studies in financial innovation for the benefit of their local economies.
Both central banks signed the MoU at a meeting in Riyadh with HKMA’s Chief Executive Eddie Yue in attendance. During the meeting, the HKMA and the SAMA shared ideas about the four key sectors-open market operations, market connectivity, sustainable development, and financial infrastructure development.
The MoU will see both banking regulators team up to experiment with the best methods to integrate tokenization into their financial systems. While Hong Kong is thriving to become a major hub for digital currencies, Saudi Arabia has adopted a conservative approach, with experts predicting that the new collaboration could see the Middle Eastern country soften its stance toward the asset class.