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Hong Kong Steps Closer to Tokenised Market with Launch of wCBDC Sandbox: Major Banks and Financial Institutions Participate in Pioneering Initiative
The initiation of the wCBDC sandbox in Hong Kong is a step towards a tokenised market. Six participants, such as HSBC, Standard Chartered, and Bank of China (Hong Kong), demonstrated test scenarios to further enhance scalability and compatibility.
On Wednesday, Hong Kong's unofficial central bank initiated a testing ground for wholesale central bank digital currency (wCBDC). Six participants presented projects designed to inch the city towards the use of digitised money for digital asset transactions.
The initiation occurred five months post the declaration of Project Ensemble by the Hong Kong Monetary Authority (HKMA), a trial aimed at enabling smooth interbank settlement of tokenized currency via wCBDC. Subsequently, an architecture community was established in May, which paved the way for the sandbox's inauguration.
The initial stage of the experiment involves 25 participants. These include banks that issue notes such as HSBC, Standard Chartered, and Bank of China (Hong Kong), along with Hang Seng Bank, fintech company Ant Group, and cryptocurrency exchange HashKey Group. These six entities also revealed the specific scenarios they will be testing further to ensure scalability and interoperability.
Several other entities are also involved, including global financial organizations like BlackRock and Franklin Templeton, as well as domestic companies such as Hong Kong and China Gas Company, Hong Kong Exchanges and Clearing, Cyberport, and the Hong Kong Science and Technology Parks Corporation.
"Tokenisation could significantly enhance the efficiency, transparency, and affordability of financial transactions," stated Eddie Yue Wai-man, the chief executive of HKMA, during the inaugural event. He further suggested that it could play a crucial role in shaping the future of finance.
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