Victor Ugochukwu · Dec 14, 2020 . 5min read
Hong Kong Selects ConsenSys for CBDC Project
ConsenSys is selected by Hong Kong Monetary Authority (HKMA) to assist in Hong Kong and Thailand’s cross-border CBDC project.
By Komal Joshi · Sep 27, 2020 . 6min read
Today U.S. blockchain firm ConsenSys declared via a blog post that it bagged a central bank digital currency (CBDC) project with the Hong Kong Monetary Authority (HKMA). The initiative includes a cross-border payment network with Thailand as the second implementation phase of Project Inthanon-LionRock. ConsenSys will work beside professional services firm PWC and FinTech Forms HK for the Hong Kong contribution. Utilizing its enterprise Ethereum stack, ConsenSys elaborates that it would trial solutions that prioritize scalability, security, and interoperability.
The Project Inthanon-LionRock
Project Inthanon-LionRock was initiated due to a Memorandum of Understanding (MoU) within the HKMA and the Bank of Thailand (BOT) to examine the pros and cons of using CBDC for cross-border payments. It was launched to investigate the application of distributed ledger technology (DLT) in cross-border fund transfers. Moreover, the project study includes bypassing the correspondent banking network. Thus, enabling direct payments between banks.
The purpose is to develop a proof-of-concept (POC) where a THB-HKD currency cross-border corridor network serves as a bridge between the Inthanon and LionRock networks. Moreover, the project intends to offer solutions to the current payment system’s hurdles. The challenges include inefficiencies, high cost, limited traceability, and complicated regulatory compliance. Additionally, the central banks of Thailand and Hong Kong are at the vanguard of Project Inthanon-LionRock. However, several financial institutions from both countries support the initiative. Moreover, they attempt to increase the efficiency in cross-border funds transfers.
ConsenSys as Expert in Developing Decentralized Payments Network
ConsenSys has expertise in creating decentralized payment networks with central banks before. It was one of the firms to associate with the Monetary Authority of Singapore in Project Ubin, to examine blockchain and DLT in payments and securities’ clearing and settlement. However, it also collaborated with the South African Reserve Bank in Project Khokha to develop a resilient, cost-effective blockchain-based interbank system.
Conclusively, the trio would operate on the second implementation phase of the project, Inthanon-LionRock, that initially began in 2018. ConsenSys’s current acquisition of the JPMorgan blockchain platform, Quorum, would help develop the HKMA CBDC project. However, the protocol now forms part of ConsenSys’ full-stack Ethereum products.
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