In April, the Hong Kong Monetary Authority (HKMA) released a discussion paper on establishing a CBDC. The document invited the public to provide input on key policy and design issues relating to a retail CBDC (rCBDC). A crypto that she wants to be freer and less dependent on the official currency. Gathered within the Aurum project, several local experts and international organizations are looking into the matter. Among these is the Bank for International Settlements Innovation Center. The goal is to develop an innovation that guarantees the fundamentals of crypto.
A CBDC innovation more suited to the market?
For several months, the Hong Kong Monetary Authority (HKMA) has been working on developing a prototype retail central bank digital currency (rCBDC). The works show that a central bank digital currency (CBDC) can work with stablecoins. With the rCBDC, the traceability of funds has been ensured on the prototype. This will allow users to recover their money in the event the intermediary goes bankrupt. The prototype also guarantees privacy protection. This, thanks to the use of pseudonyms.
The official presentation of the prototype will take place on October 31, announcement the Bank for International Settlements Innovation Center.
An announcement that comes in a context where criticism from the crypto community about the non-decentralized nature of the CBDC is rife. Some governments are also criticized for preparing a programmable CBDC, which would restrict its use.
“The CBDC used by retail customers can be private and flexible. We have no doubt that the Aurum prototype will catalyze and inspire the global quest for the most suitable rCBDC architecture (…) Bringing CBDC-backed stablecoins to life has never been done before. The system developed for CBDC-backed stablecoins is unique and can be useful for central banks”said a report from the project.
Today, around 100 jurisdictions around the world are planning to issue a CBDC crypto. Several experiments are underway in this context. The goal is to provide users with currencies more suited to their needs and aspirations. In Hong Kong, it was discovered that it is possible to create a CBDC qui works with stablecoins.
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