Hong Kong Central Bank Launches Wholesale CBDC Project to Foster Tokenization
Hong Kong’s central bank has announced the launch of a new project called “Project Ensemble,” aimed at supporting the development of the tokenization market in the city-state through a wholesale central bank digital currency (wCBDC).
In a Thursday press release , the Hong Kong Monetary Authority (HKMA) said the project aims to explore financial market infrastructure that facilitates seamless interbank settlement of tokenized money using wCBDC.
Initially, Project Ensemble will focus on tokenized deposits, which are digital representations of commercial bank deposits issued by commercial banks and available to the general public.
By using wCBDC as the foundation, these tokenized deposits can be utilized for transactions involving tokenized assets, thereby unlocking new opportunities for optimization and innovation in the tokenization era, according to the HKMA.
Eddie Yue Wai-man, the Chief Executive of the HKMA, said the Wholesale CBDC project will provide a boost to Hong Kong’s vibrant financial industry and reinforce the city’s leading position in tokenized money and assets.
Yue Wai-man emphasized Hong Kong’s commitment to innovation and international collaboration, inviting global talents and industry players to participate in this exciting tokenization journey.
“Project Ensemble will provide fresh impetus to our vibrant financial industry and reinforce our forefront position in tokenized money and assets.”
As part of the project, the HKMA plans to launch a wCBDC Sandbox later this year to facilitate research and testing of tokenization use cases.
This includes exploring the settlement of tokenized real-world assets such as green bonds, carbon credits, aircraft, electric vehicle charging stations,
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