The central banks of Hong Kong and Thailand have taken one step further to use the jointly developed digital currency of the central bank (CBDC) for cross-border payments.
On January 22, Hong Kong Monetary Authority (HKMA) and Bank of Thailand (BOT) officially announced the results of a joint CBDC research project called Project Inthanon-LionRock. Banks also issued a 90-page report that provides a detailed analysis of the potential risks and benefits of CBDC for real-time money transfers, liquidity management, regulatory compliance, and other financial aspects.
Last May, HKMA and BOT founded Inthanon-LionRock, and a joint development initiative was successfully completed last month. Ten banks from Thailand and Hong Kong participated in the project. The Thai side was attended by Bangkok Bank and Siam Commercial Bank (SCB), from Hong Kong side — the largest bank in Hong Kong and the oldest Asian bank The Hongkong and Shanghai Banking Corporation, as well as ZA Bank. The R3 blockchain consortium acted as a technical partner. According to a joint statement, BOT and HKMA agreed to continue research in this area.
Image courtesy of Tokenpost