HKMA Explores Ways to Enhance Cross-Border Transaction Efficiency
Hong Kong’s e-HKD, a central bank digital currency (CBDC), has been under development since 2021. Recently, the Hong Kong Monetary Authority (HKMA) and the Banque de France (BDF) signed a Memorandum of Understanding (MoU) to collaborate on wholesale CBDC and tokenization initiatives. Amidst their broader engagements, this partnership continues to progress.
According to HKMA, they are exploring methods to streamline cross-border transaction settlements and ensure seamless integration between their respective CBDC infrastructures. In preparation for CBDC deployment, BDF has established the DL3S infrastructure. HKMA’s investigation will unfold within the Project Ensemble sandbox.
Diverse Initiatives
Furthermore, HKMA launched Project Ensemble in March to examine the feasibility of asset tokenization linked with CBDC. Subsequently, an Architecture Community was formed, comprising Hong Kong authorities, BIS, major local banks, Ant Digital Technologies, Microsoft Hong Kong, HashKey cryptocurrency exchange, and others. Activities under this initiative, slated to commence earlier this year, are set to delve into research and testing.
Another significant effort involves HKMA and BDF as key members. Concurrent with the MoU announcement, HKMA joined the European Central Bank’s distributed ledger technology testing, focusing on tokenized government bond settlements and blockchain module interoperability experiments.
The mBridge initiative stands out as the largest CBDC-related endeavor to date, with BDF participating as an observer. HKMA has been an early participant in this initiative.
The e-HKD, a CBDC initiative in Hong Kong initiated in 2021, is currently in its second phase of trial operations. The realm of CBDC application research has witnessed substantial activity.
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