The Banque de France (BDF) and the Hong Kong Monetary Authority (HKMA) have recently inked a Memorandum of Understanding (MoU) aimed at fostering bilateral collaboration on wholesale central bank digital currency (CBDC) and tokenization. This initiative supplements their extensive joint endeavors in other significant projects.
According to a statement from the HKMA, both institutions will delve into enhancing interoperability between their CBDC infrastructures and improving efficiency in cross-border transaction settlements. The BDF, equipped with its DL3S infrastructure for CBDC introduction, will collaborate with the HKMA utilizing the Project Ensemble sandbox for their research.
In March, the HKMA launched Project Ensemble to explore asset tokenization and develop a CBDC framework. This project involves collaboration with various stakeholders, including Hong Kong regulators, the Bank for International Settlements (BIS), major local banks, HashKey crypto exchange, Ant Digital Technologies, and Microsoft Hong Kong. Research and testing for Project Ensemble are scheduled to commence midyear.
Denis Beau, First Deputy Governor of the BDF, highlighted the active participation of both the HKMA and BDF in multiple joint initiatives. Concurrently with the MoU announcement, the HKMA joined the European Central Bank’s second phase of distributed ledger technology testing, focusing on interoperability among blockchain modules for tokenized government bond settlements.
The BDF serves as an observer in Project mBridge, the largest CBDC-related initiative to date, where the HKMA is an original participant. Hong Kong’s e-HKD CBDC, in development since 2021, is currently undergoing its pilot phase. It has been notably active in researching CBDC applications.
In collaboration with the BIS, the HKMA tested a retail e-HKD with an intricate structure under Project Aurum. Additionally, the HKMA has engaged in partnerships with BIS and the United Nations to develop tokenized “green” bonds, as well as collaborations with Ripple and Visa to explore real estate tokenization.
Source: HKMA