A joint study of multiple central bank digital currencies shows that the project has the potential to speed up cross-border payments and save costs

Today (September 28), together with the Hong Kong Center (Innovation Hub) under the Innovation Hub of the Bank for International Settlements, the Central Bank of Thailand, the Digital Currency Research Institute of the People’s Bank of China, and the Central Bank of the United Arab Emirates released the title “Inthanon-LionRock to mBridge: report Building a multi CBDC platform for international payments “, describes” a variety of central bank currency cross-border network of digital medium-term research “(mBridge) project.

mBridge Project 1 is one of the measures of the Monetary Authority’s ” FinTech 2025″ strategy. The purpose is to strengthen the research on the central bank’s digital currency so that Hong Kong can be fully prepared for related future development. Through the mBridge project, the HKMA further develops the prototype of the cross-border corridor network established at an earlier stage to support more currencies and connect to new or traditional payment systems in various places.

The report pointed out that the upgraded prototype can bring various benefits to participating central banks, including the ability to manage the liquidity of their respective central bank digital currencies, monitor the flow and balance of their respective central bank digital currencies, increase transaction privacy, and remove certain Some compliance functions are automated. Compared with the current correspondent banking model, the prototype can greatly speed up the cross-border fund transfer process and save costs.

Mr. Li Tat-chi, Vice President of the Monetary Authority, said: “ Hong Kong has been able to become a successful international financial center with its sound and advanced financial infrastructure. The mBridge project leverages Hong Kong’s existing advantages and networks in the global financial system to help us move forward. Maintaining a leading position in the subsequent digitalization process. The HKMA will continue to work closely with Innovation Hubs and other central banks to expand and deepen this research, which will also help promote global exploration and use of central bank digital currencies to promote cross-border payments. “

The above report is available on the HKMA website (English version only).

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