RD Wallet Technologies, a fintech company founded by Hong Kong’s former central banker Norman Chan Tak-lam, will launch a digital wallet on Thursday which will allow companies to make cross-border digital payments in five major currencies.
“Hong Kong is an international financial centre, and we need to seek new technological routes for making payments and to make trading more secure and more efficient,” he said at a media briefing on Wednesday.
Chan set up RD Technologies in 2020 and secured a stored value facility license for RD Wallet in December last year. After six weeks of trials with over 150 companies in March and April, the HKMA has given the green light for the digital wallet to become fully operational.
The projects follow Chan’s pioneering work in the financial technology space during his tenure as CEO of Hong Kong Monetary Authority between 2009 and 2019. In 2017, he introduced seven measures to promote fintech in Hong Kong, including the launch of the online remittance network FPS (Faster Payment System) and approved the launch of eight virtual banks.
RD Wallet will allow companies to open online accounts and conduct foreign currency conversions and cross-border payments in five major currencies, namely the Hong Kong dollar, yuan, US dollar, yen and euro.
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The e-wallet app will allow corporate clients to open accounts remotely by mobile phones in as little as an hour’s time. This compares with the several days or even weeks it takes to open a business account at a banking branch, he said.
“We opted for developing an electronic wallet facility instead of opening a bank branch as it is easier and more convenient,” Chan said.
“Hong Kong is one of the world’s largest trading economies, and RD Wallet, as the first multicurrency mobile wallet for businesses in Hong Kong and in Asia, can connect the companies globally for mobile remote account opening and payment services.
“RD Wallet will help businesses, ranging from small companies to large multinationals, to upgrade their efficiency in trade and promote the development of Hong Kong as an international financial centre and the premier trade hub in Asia.”
Chan’s plan to introduce a stablecoin linked with the Hong Kong dollar will accelerate once the government introduces a law regulating the asset. He added that he would like the pilot to start early as the current law does not prevent the issuance of stablecoin, and he would apply for a license from the HKMA when the law is introduced.
“At present, many of the stablecoins are pegged with the US dollar, but there is no stablecoins linked with the Hong Kong dollar. I would like to see my company, RD Technologies, to be the first to introduce the first Hong Kong dollar stablecoin in the market,” he said.
HKMA has just completed the first phase of the test-launch of e-HKD, but Chan said there was no conflict with RD Technologies’ stablecoin.
“E-HKD is a central bank digital currency while stablecoin is for other virtual asset payments. The usage of the two are quite different,” he said.
Chan also added the JPEX scandal would not hurt Hong Kong government’s commitment to promote Web3 development.
“The JPEX incident showed the importance of proper regulation and licensing to protect investors’ interest and to promote the healthy development of the virtual assets industry,” Chan said.