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Hong Kong to Explores Applications for Central Bank Digital Currency

By Tracy Hannes | November 9, 2019

The Hong Kong Monetary Authority (HKMA) has reportedly disclosed that extensive time and resources are being put into exploring applications for a central bank digital currency (CBDC).

Reported by Ejinsight, on November 7, HKMA will be publicly publishing its research on the matter in the first quarter of 2020. 

HKMA further announced the blockchain partnership with a subsidiary of the Institute of Digital Currency at the People’s Bank of China (PBoC) – the establishment rumoured to be the first to roll out a CBDC throughout the world. 

Edmond Lau — HKMA’s senior executive director – has shed some lights into the current CBDC developing process of the bank – which is reportedly being carried out under the name revealed to the public,  “Project LionRock”, since 2017. 

HKMA, with joined forces from Hong Kong Interbank Clearing Ltd., blockchain firm R3, along with 3 different banks, are working on the project. 

Specifically, the project will come up with a proof-of-concept study on token-based CBDC, research for a blockchain solution to handle debt securities problems, an evaluation of the possible effect of CBDC on payment systems, the potential of a two-tier issuance model – which would grant businesses the power to to possess and conduct CBDC-based tokens, as sponsored participants of their banks.

HKMA reportedly will focus its sources in exploring CBDC implementations, which supports financial institutions, rather than retail clients, as there currently are numerous digital mobile payments options for these clients to choose from.

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