Hong Kong Monetary Authority releases digital Hong Kong dollar research report

Odaily Planet Daily reported that the Hong Kong Monetary Authority, together with the Hong Kong Center of the Bank of Israel and the Bank for International Settlements Innovation Hub (BISIH), published a report entitled "Project Sela - a widely used and secure retail-level central bank digital currency ecosystem." ” report serves as Hong Kong’s reference for the digital Hong Kong dollar. Project Sela was launched in June last year to study the design structure of a retail-level central bank digital currency (CBDC). The project proposes to introduce a new type of intermediary agency called "Access Enabler" into the retail-level CBDC system. Different from traditional payment systems, "access facilitators" will not hold CBDC and will only transmit users' payment instructions to the ledger operated by the central bank, so they do not need to meet strict capital and liquidity requirements. This will lower the threshold for new players to provide CBDC services and increase participation in the payment market, thereby promoting competition and innovation. In addition, the project established a proof-of-concept prototype using distributed ledger technology (DLT), proving that the design structure can meet strict cybersecurity, legal and policy requirements in terms of technical execution. (Economic Journal)