Eddie Yue, CEO of the Hong Kong Monetary Authority (HKMA), believes that cryptocurrencies can play a central role for future financial systems.
Speaking at a meeting organized by the G20, Yue noted that the technology that powers many crypto projects can be integrated into the overall financial system.
Yue also called for the industry to be regulated in order to avoid risks such as the collapse of the Terra ecosystem.
“Despite the Terra-Luna incident, I think that even if crypto and DeFi are on the decline, they will not disappear. Because the technology and business innovation behind these developments is likely to be important to our future financial system.”
Yue’s statements are consistent with HKMA’s friendly approach to the crypto industry. In January 2022, the institution stated that while accepting the risks of the sector, they were also open to embracing the benefits of financial innovation.
In particular, the institution has focused more on stablecoin regulations after the collapse of the Terra ecosystem.
The HKMA warned in its latest research that stablecoins could weaken the country’s dollar.
