The Hong Kong Monetary Authority (HKMA) has announced Project Ensemble, a new initiative to create a wholesale central bank digital currency (wCBDC).
The Hong Kong Monetary Authority (HKMA) has announced Project Ensemble, a new initiative to create a wholesale central bank digital currency (wCBDC) specifically designed to support the burgeoning field of asset tokenization. This project could eventually culminate in the issuance of a full-fledged "live" CBDC, according to the HKMA.
Project Ensemble will focus on developing innovative financial market infrastructure (FMI) to streamline interbank settlements using wCBDC. Initially, the project will explore tokenized deposits, essentially digital representations of commercial bank money, for transactions involving tokenized real-world assets. These assets could encompass a wide range, including green bonds, carbon credits, and even physical assets like aircraft and electric vehicle charging stations.
“Hong Kong has always championed innovation and international collaboration. Project Ensemble will provide fresh impetus to our vibrant financial industry and reinforce our forefront position in tokenized money and assets," stated the HKMA's chief executive, extending an invitation for international collaboration.
To facilitate collaboration and knowledge sharing, the HKMA will establish a wCBDC Architecture Community. This group will comprise local and international banks, key industry players, and the HKMA's CBDC Expert Group. The Expert Group, formed in October 2023, brings together academics from various disciplines across Hong Kong's universities. Additionally, the HKMA is seeking participation from other central banks and international organizations.
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