Central Banks of China, UAE Join Blockchain-Based CBDC Payments Project

The project will explore the capabilities of a DLT-based central bank digital currency in regional payments.

The Hong Kong Monetary Authority and the Bank of Thailand have announced the central banks of China and the United Arab Emirates are joining a project looking to use blockchain tech for regional payments.

The “Multiple Central Bank Digital Currency Bridge” (m-CBDC) project will explore the capabilities of distributed ledger technology (DLT) through the development of a proof-of-concept (PoC) prototype, according to a joint statement Tuesday.

Specifically, the central banks will explore the possibilities of DLT and CBDCs in facilitating cross-border, multi-currency, real-time payments.

Hong Kong and Thailand previously collaborated on Project-Inthanon-Lionrock in Q4 2019 which developed a DLT-based prototype allowed participating banks to conduct payments on a peer-to-peer basis, removing clearing and settlement pain points.

Under its new name, the m-CBDC Bridge will expand across more central banks, which will evaluate its feasibility on a pan-Asian and eventually wider basis.