According to a business insight post published this week, HSBC supports central bank digital currencies and collaborates with central banks in eight countries to promote their objectives.

HSBC Group CEO Noel Quinn said the bank was exploring proposals for digital currencies with central banks in the United Kingdom, France, Canada, Singapore, China, Hong Kong, Thailand, and the United Arab Emirates (UAE), which he said should spur innovation across the financial sector.

Quinn ended the paper positively about CBDCs and how governments may use the technology to issue digital currency. He also mentioned the lower cash handling expenses associated with converting to digital currencies rather than cash, resulting in cheaper costs and more efficient payments.

Quinn also emphasized transaction speed and the ability to undertake atomic transactions, both of which would lower bond costs while assisting governments and central banks in achieving broader monetary policy goals.

Similar sentiments were made earlier this month by Benoît Curé, the head of the Bank for International Settlements (BIS), who sounded positive about CBDCs and their potential in future financial systems in a speech.

“The financial system is shifting under our feet…the time has passed for central banks to get going,”

Cœuré said.

Quinn writes in his piece that HSBC prefers a hybrid strategy for CBDCs, in which central banks and commercial banks collaborate to deliver the currency.

“HSBC believes a hybrid model – sometimes called a two-tier model because the CBDC itself is a claim against the central bank but commercial banks provide the payment services and account management activity – is by far the best design option.”

The remarks could point to a viable path for central banks presently collaborating with HSBC to develop their future policy views.

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