Today U.S. blockchain firm ConsenSys announced it landed a central bank digital currency (CBDC) project with the Hong Kong Monetary Authority (HKMA). The initiative involves a cross-border payment network with Thailand as the second phase of Project Inthanon-LionRock. ConsenSys will work alongside professional services firm PWC and FinTech Forms HK for the Hong Kong contribution.
Project Inthanon-LionRock was launched in 2019 by the HKMA and Bank of Thailand to explore the use of distributed ledger technology (DLT) in cross-border fund transfers. Inthanon is Thailand’s distributed ledger technology (DLT) CBDC initiative and LionRock is the Hong Kong equivalent.
The experiment involves circumventing the correspondent banking network, allowing direct payments between banks. The aim is to ‘build a proof-of-concept (PoC) where a THB-HKD cross-border corridor network is set up as a bridge between the Inthanon and the LionRock networks”. It seeks to overcome the existing challenges, such as cost, traceability, and regulatory compliance.