Hong Kong and Thai central bank set to test digital currencies in real-world setting after successfully completing first phase
- Hong Kong Monetary Authority and Bank of Thailand launched Project LionRock-Inthanon to study a blockchain-backed cross-border payment platform in November
- HKMA wants to expand the blockchain network to include more currencies and involve more central banks in the project.
The Hong Kong Monetary Authority and the Bank of Thailand said on Wednesday that they have successfully completed the initial phase of their respective sovereign digital currencies project.
Colin Pou, executive director of financial infrastructure at HKMA, said as the project now was progressing to actual testing, he is confident that more banks from Hong Kong will join.
“The HKMA and the Bank of Thailand will select some real bilateral trades as part of our further testing [of the network] to look into how these payments and cross border fund transfers are done,” said Pou.
Currently, 10 banks from both Hong Kong and Thailand have been roped into the project. These include Krungsri, Siam Commercial Bank and Kasikorn from the Thai side. Hong Kong virtual bank operator Zhong An Technologies International is taking part, while HSBC is participating in both legs of the project.
Project LionRock-Inthanon was first unveiled by the two central banks in November 2019 during the Hong Kong Fintech week, taking forward a fintech collaboration between the two sides signed in May.