HKMA starts testing new digital currency
The Hong Kong Monetary Authority (HKMA) on Thursday said it plans to test its wholesale central bank digitalised currency (wCBDC) in tokenised asset transactions this year. A wCBDC is a digital currency used by financial institutions to settle large-value interbank payments and securities transactions. Under a new HKMA project named Ensemble, commercial banks would be able to digitalise bank deposits for seamless interbank settlements of tokenised money. The authority would also look into the use of this currency in trading tokenised real world assets, such as green bonds, aircraft and electric vehicles. The HKMA's chief executive, Eddie Yue, said the project would support the development of the tokenisation market in the SAR. "Hong Kong has always championed innovation and international collaboration. Project Ensemble will provide fresh impetus to our vibrant financial industry and reinforce our forefront position in tokenised money and assets," he added. The city's de-facto central bank added that it would officially issue the digital currency at an appropriate time, if the test receives positive feedback from the industry.