Ethereum
$185.71 1.62%
ETH · 1w

Hong Kong Steps Up Research Into Central Bank Digital Currency

The Hong Kong Monetary Authority (HKMA) has revealed it is conducting research into applications for a central bank digital currency (CBDC).

Ejinsight reported on the news — announced during the Hong Kong Fintech Week — on Nov. 7. HKMA reportedly aims to release a major report on its findings in Q1 2020. 

Collaboration with the People’s Bank of China

HKMA had also just revealed it had signed a blockchain collaboration with a subsidiary of the Institute of Digital Currency at the People’s Bank of China (PBoC) — an institution which many expect will be the first globally to launch a CBDC. 

During the fintech recent, Edmond Lau — HKMA’s senior executive director — gave insights into the bank’s ongoing CBDC research, which has reportedly been conducted under the aegis of “Project LionRock” since 2017.

The project is being conducted together with Hong Kong Interbank Clearing Ltd. and three further banks, as well as blockchain consortium R3. 

It includes a proof-of-concept study on token-based CBDC, research into debt securities issuance using blockchain, an evaluation of CBDC’s potential for payment systems and exploration of a possible two-tier issuance model, which would allow corporates to hold and use CBDC tokens as sponsored participants of their banks.

HKMA reportedly remains focused on the prospective use of a CBDC for financial institutions rather than retail clients — with a particular interest in domestic interbank payments, wholesale corporate payments and its potential for delivery-versus-payment in debt securities settlement.

Retail users already have widespread access to digital mobile payments services, Lau reportedly stressed.

This May, HKMA also signed a memorandum of understanding with the Bank of Thailand to conduct a joint research project into the use of a CBDC for cross-border payments and interbank payment-versus-payment services between the countries.

Picking and choosing

As re...

Continue on cointelegraph.com
Recent news
ETH +1.62% · ethresear.ch · 14h

A mathematical analysis of Uniswap markets

Hey all! We just put out a new paper showing some interesting properties of Uniswap and its generalizations. The paper can be found on arXiv. Essentially, we show a few things: The instantaneous U...
ETH +1.62% · blog.district0x.io · 17h

The District Weekly — November 16th

This past week the district0x team published a new bi-weekly dev update. After going on a wild goose looking for the blockage behind the “NSFW” tag implementation on Meme Factory mainnet, we…
ETH +1.62% · blog.coinbase.com · 19h

Coinbase comes out against ProgPoW

Coinbase recently changed the confirmation requirement of four different assets, including reducing Bitcoin confirmation requirement from six confirmations to three. This post describes our views…
20
ETH +1.62% · finance.yahoo.com · 20h

Is a Cryptocurrency Derivatives Boom On Its Way?

While the crypto market continues to stall, some analysts are betting on institutions to carry the next bull cycle, opposed to casual traders who snowballed the BTC price in 2017. Indeed, the Wild Wes...