Hong Kong’s financial authorities and Thailand’s central bank reportedly announced the results of the Central Bank’s “Project Intanon-LionRock” joint research project.
The two authorities signed a memorandum of understanding in May last year. Together, they launched the “Intanon-LionRock Project” to study whether CBDC applicable to payment methods between countries. It has developed a cross-border corridor prototype between the Hong Kong Financial Services Authority and the Thai central bank.
That helped reduce payment methods. Because banks in Hong Kong and Thailand were able to carry out fund transfers and foreign exchange transactions on a peer-to-peer basis. Based on smart contracts, the cross-border money transfer process will also get stronger in real-time and nuclear ‘pay-to-payment’ (PvP) ways.
Details on the Hong Kong and Thailand Intinon-LionRock project
The Intinon-LionRock project finished in December last year. And a distributed ledger technology-based proof of concept (PoC) prototype was successfully developed by 10 participating banks in Hong Kong and Thailand.
The two authorities released a report containing key research results. Including token conversion, real-time interbank money transfers, foreign exchange execution, liquidity management, and regulatory compliance.
Hong Kong’s financial authorities and Thailand’s central bank have agreed to continue to investigate and study in related areas. Including cross-border fund exchange-related trials and cooperation with other platforms, including bank participation.
“The joint research project with Thai banks is an important first step toward addressing low-efficiency and high-cost grievances,” said Edmund Lau, senior director of the Hong Kong Financial Services Agency.
Therefore he adds that blockchain technology has not only been able to solve technical problems in different applications. But has also served as a good reference for using central bank digital currencies.
Ma Hui, vice president of the Bank of Thailand, said the new border-first model made based on PoC. So that it has made reference to business cases and shortcomings.
“This model provides a network that can exchange funds across borders and momentarily based on the P2P method. It is an important project for central banks to add a new dimension to the study of the frontier fund exchange areas,” he said.
Meanwhile, China has finalized its CBDC and looking for an upcoming launch.