Bitcoin News and Finance
Hong Kong Presents Digital Currency Prototype, Project Aurum Skip to main content

Hong Kong Presents Digital Currency Prototype, Project Aurum

Hong Kong Presents Digital Currency Prototype, Project Aurum

Financial authorities in Hong Kong have unveiled a prototype of the Chinese autonomous territory’s own central bank digital currency called Project Aurum. The two-tier platform features a wholesale interbank and a retail e-wallet system, participants revealed.

Hong Kong to Issue Retail Tokens and Stablecoins as Part of Project Aurum

A collaboration between the BIS Innovation Hub Hong Kong Centre, the Hong Kong Monetary Authority (HKMA), and the Hong Kong Applied Science and Technology Research Institute has produced a prototype of Hong Kong’s upcoming digital currency, the Bank for International Settlements (BIS) announced.

Project Aurum is a full-stack, front-end and back-end, central bank digital currency (CBDC) system comprising a wholesale interbank system and a retail e-wallet system, the international financial institution explained in a press release this week.

Participants in Aurum want to launch two different types of digital tokens. The first kind will be an intermediated digital currency while the second one will be a CBDC-backed stablecoin circulated in the interbank system. The BIS remarked:

The latter is unique in the study of CBDC to date. Privacy, safety and flexibility are core to the system.

“Bringing CBDC-backed stablecoins to life has never been done before and we, therefore, felt that doing so may supplement the growing body of research on private sector stablecoins,” the project’s authors elaborate. They further explain that in contrast with private stablecoins, Aurum’s stablecoin balances are reconciled, versus real-time gross settlement balances of the issuing bank with the central bank.

The developers believe that the system of CBDC-backed stablecoins can be used by monetary authorities when they try to work out the regulatory approaches in regard to private sector stablecoins, “especially while seeking to design methods to verify the backing of the stablecoins, a highly topical matter.” Just like with its fiat currency, three of Hong Kong’s financial institutions will be authorized to issue state-backed digital coins.

Hong Kong, one of the world’s major financial centers, has been intensifying efforts to catch up with others on the CBDC development front, including mainland China which has been expanding the digital yuan (e-CNY) pilot. The Chinese special administrative region started exploring the issuance of its own CBDC in March 2021.

In September of this year, the HKMA said that it was preparing to trial a digital version of the Hong Kong dollar (e-HKD) in the coming months. The monetary authority also took part in trials of cross-border CBDC transactions with the People’s Bank of China and the central banks of Thailand and the United Arab Emirates.

Do you expect Hong Kong to issue its digital currency in the near future? Tell us in the comments section below.

Labels:

Comments

Post a Comment

Popular posts from this blog

Custodial Lightning Network Service Attack Discovered by LN ‘Newbie’ — Hacker Strikes 6 LN Custodians

On September 18, a Redditor posted to the r/bitcoin forum and explained how he discovered a way to “attack [the] lightning Network’s custodial services.” The Reddit account dubbed “Reckless Satoshi” wanted to figure out if a “discrepancy between real routing fees and service’s transaction fee can be exploited for a profit.” The researcher disclosed that he wanted to see how large the damage could be and said “it is bad.” 6 Lightning Network Custodial Services Attacked, Researcher Discloses Findings to Offenders Prior to Public Disclosure A Redditor called Reckless Satoshi published a disclosure post on r/bitcoin this past Saturday and disclosed how he had found a vulnerability with routing fees and some of the Lightning Network’s custodial services. The research attack was done in good faith and after it was complete he disclosed the bugs to the offending services before publishing his findings. Reckless Satoshi used the Lightning Network (LN) attack on six different services incl...
Post a Comment
Read more

Axie Infinity Down 40% Since Last Week’s Price High, Protocol Revenue Outshines Competitors

Last week, the game token leveraged within the Axie Infinity gaming universe skyrocketed to all-time highs, while other crypto markets remained extremely lackluster. During the last seven days, Axie Infinity’s platform token has dropped significantly in value shedding more than 12%. Meanwhile, the game platform’s smooth love potion token has slid over 8% over the last 24 hours. Axie Infinity Down More Than 40% Since All-Time High Not too long ago, the axie infinity (AXS) token was a topical conversation because it reached an all-time high on July 15. At the time, AXS managed to capture $28.93 per unit and since then it has shed 12.8% during the last seven days. The axie infinity (AXS) token is used within the blockchain-based game that involves battles between token-based creatures called “Axies.” AXS is used for the game’s governance system as well as other actions within the game. At the time of writing axie infinity (AXS) is exchanging hands for $16.70 per coin. AXS/USD on Ju...
Post a Comment
Read more

Play-to-Earn Game From Polker (PKR) Exchange Listing – Endorsed by Akon

The Play-to-Earn NFT based Polker.Game ‘s native token $PKR has been officially listed on the popular centralized exchange BitMart. Polker.game has been in the spotlight recently as Akon, the American R&B superstar and record producer gave his official endorsement of polker stating that the “game is revolutionary” and that Polker is “hands down.. the best play to earn, NFT game in the space.”. With the BitMart listing and celebrity endorsement from Akon, Polker is perfectly positioned to become a major player in the Play-to-Earn league. Watch Akon’s Video Here What is Play-to-Earn? Although not a new concept, play-to-earn has become a trending term due to the popularity of the NFT game AXIE infinity. In the past, previous play-to-earn games have also achieved success – however, thanks to the huge amount of development in the blockchain space in recent years the gaming experience is now massively improved. Play-to-Earn games are essentially free to play and open to anyone and...
Post a Comment
Read more

China to Crack Down on Copyright Infringement Through NFTs

Authorities in China are going after creators of digital collectibles based on other people’s works of art, the use of which was not authorized. The government offensive is part of a campaign to combat online copyright infringement and piracy with the participation of several departments. Regulators in China Move to Strengthen Copyright Supervision of Online Platforms The National Copyright Administration of China (NCAC) has recently launched a campaign against copyright infringement and piracy on the internet, together with the Ministry of Industry and Information Technology, the Ministry of Public Security, and the State Internet Information Office of the People’s Republic. A major objective of the initiative is to improve copyright supervision of online businesses by investigating cases involving the sale and distribution of infringing products on short video, live broadcast and e-commerce platforms, and promptly dealing with infringing content, the agency announced in a press r...
Post a Comment
Read more
Blogarama - Blog Directory