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It's surprising to see CNBC (western media) reporting on this:







 
No matter an asserted gold backing, no one is going to accept a World Reserve Currency issued by a government that is opaque, both in holdings and in operations, and has a 75-year history of totalitarian behavior.

The same things now threatening the dollar as the world's reserve currency, work against China's two currencies. As the US slides into control by unseen oligarchs, with increasingly illogical, irresponsible decisions and actions...China, while behaving rationally at present, has not proven trustworthy.
 
SCMP

Hong Kong touts key advantages over London in bid to become global gold hub​

Financial services minister Christopher Hui says government backing, integrated settlement and Shanghai ties will distinguish city's gold trading ecosystem

Distinctive features will set Hong Kong apart from London, a major bullion hub, as the city accelerates efforts to develop an international gold and precious metals trading ecosystem covering the entire value chain, a minister has told the South China Morning Post.

In an exclusive interview on Thursday, Secretary for Financial Services and the Treasury Christopher Hui Ching-yu said the city would officially launch a central gold clearing platform in the first quarter of next year. It would handle both physical delivery and payments, with the latter linked to the real-time gross settlement system.

More:

https://www.msn.com/en-xl/money/inv...-global-gold-hub/ar-AA2epY8U?ocid=socialshare
 
China has STABILITY. At least for the moment.

That is something London does NOT have.

Money doesn't like chaos. Otherwise, the Financial industry would have a heavy African presence.
 
searcher said:
Hong Kong touts key advantages over London in bid to become global gold hub
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Related:
Hong Kong is moving at “Hong Kong speed” to build a full gold and commodities ecosystem while advancing the yuan, according to Treasury Secretary Christopher Hui in a new SCMP interview after the LBMA conference in Italy.
Key points:

⭕️ Central gold clearing system (currently in pilot) launches formally in Q1 2027. It supports true DVP — physical delivery + cash settlement linked to RTGS — something London doesn’t currently offer in the same integrated way.

⭕️ Direct “Delivery Connect” collaboration with the Shanghai Gold Exchange, with settlement facilities for both markets based in Hong Kong.

⭕️ RMB gold futures details to be announced by HKEX before end-2026.

⭕️Storage capacity targeted to exceed 2,000 tonnes within three years (government + private sector), plus more refining capacity coming onshore.

⭕️ From the Oct 2024 Policy Address announcement to full clearing implementation in roughly 15 months — cited as concrete “Hong Kong speed.” Positive feedback from industry participants at LBMA on the timetable and readiness.

⭕️LBMA Asia Forum coming to Hong Kong in April 2027, by which time the clearing house should be live.

⭕️On the yuan: Hui framed it as serving the real economy, not just financialization. Asian economies (ASEAN is already HK’s second-largest trading partner) are trading more among themselves, and the RMB’s lower interest rates vs the USD make it increasingly practical for trade settlement and financing. Hong Kong remains the largest offshore RMB hub. Retail e-CNY acceptance among local merchants is also growing, helped by deeper integration with the mainland.

🎯Overall pitch: Asia-time-zone venue that combines trading, storage, clearing, refining, and risk management under one ecosystem, with government backing and Shanghai connectivity.

🔶DVP (Delivery versus Payment)
A settlement mechanism in which the transfer of an asset (e.g., physical gold or securities) and the corresponding payment occur simultaneously and are conditional on each other. One side only delivers if the other side pays, and vice versa. This eliminates the risk that one party delivers the asset but does not receive payment (or the reverse).

🔶RTGS (Real-Time Gross Settlement)
A payment system in which transfers of funds are settled individually (gross) and immediately (in real time) once the payment is submitted and funds are available, rather than being batched and netted at the end of the day. In Hong Kong’s context, the gold clearing system is being linked to the city’s RTGS system so that cash settlement can happen instantly and irrevocably alongside the physical gold delivery under the DVP process.
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This is an interesting discussion. Elon's Boring Company will change the world. Possibly changing the seats of world power.

This Changes Everything...​

00:00 Elon's Boring Company and the Bering Strait tunnel
01:27 Commerce over conflict: a land bridge to Russia
05:27 JFK, Khrushchev and the peace tunnel
06:43 The American System vs the City of London
11:18 Sea routes vs land routes: the choke points
12:40 God and Gold: how oil won the Navy
16:07 Europe pays Russia more than it gives Ukraine
21:14 Trump, Putin and Xi to end the Ukraine war
23:45 Rubio in Central Asia
26:22 Israel and Trump's Netanyahu endorsement
30:13 Trump and Netanyahu: no love lost
34:22 Was Soleimani a Mossad asset?
 
FRANKFURT, Oct 21 (Reuters) - The European Central Bank can strengthen the euro's global role and amplify the reach of its monetary policy by providing liquidity safety nets to foreign countries, ECB chief ‌economist Philip Lane said on Wednesday.

Speaking at a closed-door event in Shanghai titled "Monetary System Beyond the Dollar", Lane said demand for the ECB's recently expanded euro liquidity facilities had been strong, with more than 30 central banks expressing interest.
...
Lane argued that greater international use of the euro would enhance the ECB's ability to deliver on its inflation mandate by extending the global impact ‌of ⁠euro area monetary policy.

He said the ECB's EUREP facility, which allows foreign central banks to obtain euros against collateral denominated in the single currency, could boost bond markets in the 21-country bloc, particularly through increased purchases by official reserve ⁠managers.
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More:

But will it be more attractive than the gold collateral system that China is building? I think probably not.
 
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