Authorities weigh move to establish world's first digital gold settlement hub amid rising geopolitical strains.

Policy Push Toward Tokenized Gold

Authored by GoldFix ZH Edit

Authorities in Hong Kong are considering a major initiative to expand tokenized gold trading, a step aimed at positioning the city as the world's first settlement centre for digital gold transactions while reducing reliance on the US dollar.

According to the South China Morning Post, Chief Executive John Lee Ka-chiu is expected to outline the effort in his upcoming policy address. His advisers have urged him to put forward a framework for tokenized gold trading that would strengthen Hong Kong's standing as an international financial hub. One insider noted, "The move will boost gold trading in Asia and bypass the Western-dominated international payment settlement system amid the rising geopolitics."

Strategic Hedge Against Sanctions

The push comes as global tensions highlight the vulnerability of Western-led payment systems. The exclusion of several Russian banks from SWIFT during the war in Ukraine served as a warning. Advocates argue that digital gold settlement could provide Hong Kong with greater resilience. Another source explained, "Digital gold trading would help Hong Kong stave off Western sanctions such as a SWIFT ban."

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