Hong Kong Monetary Authority (HKMA) has awarded the Ethereum blockchain venture production studio ConsenSys the contract to head the second phase implementation of its Central Bank Digital Currency study project.
According to the firm’s blog post today, the initiative named Project Inthanon-LionRock, which began in 2018 would require ConsenSys to work with PricewaterhouseCoopers Limited and Forms HK.
With ConsenSys at the forefront of the project, the firm stated that it would use its enterprise Ethereum stack to test solutions that prioritize scalability, security, and interoperability.
Commenting on the development, Charles d’Haussy, Director at Hong Kong arm of ConsenSys, said:
ConsenSys is thrilled to lead this implementation of CBDC for cross-border payments. We are humbled to work on the development of Hong Kong’s financial infrastructure.
Inthanon-LionRock solves payment deficiencies
Project Inthanon-LionRock was initiated as a result of a Memorandum of Understanding (MoU) between the HKMA and the Bank of Thailand (BOT) to study the pros and cons of utilizing CBDC in cross-border payments.
The project is tipped to provide solutions to the current payment system’s challenges, including inefficiencies, high cost, limited traceability, and complex regulatory compliance.
Even though the central banks of Thailand and Hong Kong are at the forefront of the Project Inthanon-LionRock, the initiative is backed by several financial institutions from both countries, as they seek to increase the efficiency in cross-border funds transfers.
ConsenSys’s recent acquisition of the JPMorgan blockchain platform, Quorum, would come handy in developing the HKMA CBDC project.
ConsenSys developing faster payment solutions
This is not the first time that ConsenSys will be working with central banks to develop a blockchain-based payment solution for cross-border remittance.
ConsenSys was instrumental in developing the Monetary Association of Singapore’s Project Ubin and South Africa’s project Khokha. Both projects were introduced to enhance the countries’ payment processing speed.