Central Banks of China, UAE Join Blockchain-Based CBDC Payments Project
The project will explore the capabilities of a DLT-based central bank digital currency in regional payments.
The Hong Kong Monetary Authority and the Bank of Thailand have announced the central banks of China and the United Arab Emirates are joining a project looking to use blockchain tech for regional payments.
- The "Multiple Central Bank Digital Currency Bridge" (m-CBDC) project will explore the capabilities of distributed ledger technology (DLT) through the development of a proof-of-concept (PoC) prototype, according to a joint statement Tuesday.
- Specifically, the central banks will explore the possibilities of DLT and CBDCs in facilitating cross-border, multi-currency, real-time payments.
- Hong Kong and Thailand previously collaborated on Project-Inthanon-Lionrock in Q4 2019 which developed a DLT-based prototype allowed participating banks to conduct payments on a peer-to-peer basis, removing clearing and settlement pain points.
- Under its new name, the m-CBDC Bridge will expand across more central banks, which will evaluate its feasibility on a pan-Asian and eventually wider basis.
The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.
Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.