{"id":502911,"date":"2022-10-21T21:45:00","date_gmt":"2022-10-21T18:45:00","guid":{"rendered":"https:\/\/en.buradabiliyorum.com\/hong-kong-unveils-completed-retail-cbdc-project-that-has-a-cbdc-backed-stablecoin\/"},"modified":"2022-10-21T21:45:00","modified_gmt":"2022-10-21T18:45:00","slug":"hong-kong-unveils-completed-retail-cbdc-project-that-has-a-cbdc-backed-stablecoin","status":"publish","type":"post","link":"https:\/\/buradabiliyorum.com\/en\/hong-kong-unveils-completed-retail-cbdc-project-that-has-a-cbdc-backed-stablecoin\/","title":{"rendered":"# Hong Kong unveils completed retail CBDC project that has a CBDC-backed stablecoin"},"content":{"rendered":"<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_85 counter-hierarchy ez-toc-counter ez-toc-custom ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-6a3bf39957e9a\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #dd3333;color:#dd3333\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #dd3333;color:#dd3333\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-6a3bf39957e9a\" checked aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-1'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/buradabiliyorum.com\/en\/hong-kong-unveils-completed-retail-cbdc-project-that-has-a-cbdc-backed-stablecoin\/#%E2%80%9D_Hong_Kong_unveils_completed_retail_CBDC_project_that_has_a_CBDC-backed_stablecoin_%E2%80%9C\" >&#8221; Hong Kong unveils completed retail CBDC project that has a CBDC-backed stablecoin &#8220;<\/a><\/li><\/ul><\/nav><\/div>\n<h1><span class=\"ez-toc-section\" id=\"%E2%80%9D_Hong_Kong_unveils_completed_retail_CBDC_project_that_has_a_CBDC-backed_stablecoin_%E2%80%9C\"><\/span>&#8221; Hong Kong unveils completed retail CBDC project that has a CBDC-backed stablecoin &#8220;<span class=\"ez-toc-section-end\"><\/span><\/h1>\n<p><img decoding=\"async\" src=\"https:\/\/images.cointelegraph.com\/images\/840_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvZjAxYzc4NDEtYTc0ZS00ODY4LTg0NzgtMDk3OTA2MTNlOWFjLmpwZw==.jpg\" \/><\/p>\n<div class=\"post-content\" data-v-4b69a2fe>The Hong Kong Monetary Authority presented its completed Aurum retail central bank digital currency (CBDC) prototype on Oct. 21. The system, developed in conjunction with the Bank for International Settlements (BIS) Innovation Hub, has a unique structure that reflects the intricacies of the existing system for issuing money in Hong Kong.<\/p>\n<p>Aurum consists of a wholesale interbank system and retail e-wallet. The e-wallet is created at a local bank and has a smartphone interface. A validator system prevents bank over-issuance and user double redemption. <\/p>\n<p>The inter<a href=\"https:\/\/buradabiliyorum.com\/en\/category\/social-mediaa\/\" data-internallinksmanager029f6b8e52c=\"1\" title=\"Social Media\" target=\"_blank\" rel=\"noopener\">media<\/a>ted retail CBDC is used in the e-wallets, and CBDC-backed stablecoins are used in the interbank system. The unusual CBDC-backed stablecoins digitally mirror Hong Kong\u2019s existing currency system, in which bank notes are issued by three financial institutions and backed by the central bank. The CBDC is a direct liability of the central bank, while the stablecoins are liabilities of the issuing bank, with backing assets held by the central bank. The authors <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/www.bis.org\/publ\/othp57.htm\">stated<\/a>:<\/p>\n<blockquote><p>\u201cBringing CBDC-backed stablecoins to life has never been done before and we therefore felt that doing so may supplement the growing body of research on private sector stablecoins. Indeed, what distinguishes Aurum from private sector stablecoins is that Aurum\u2019s stablecoin balances are reconciled, versus real time gross settlement (RTGS) balances of the issuing bank with the central bank.\u201d <\/p><\/blockquote>\n<p>The high level of decoupling between the wholesale and retail ledgers gives the system a high level of cyber-resilience, the designer said. <\/p>\n<blockquote class=\"twitter-tweet\">\n<p lang=\"en\" dir=\"ltr\">Join us at <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/HongKongFinTech?ref_src=twsrc%5Etfw\">@HongKongFinTech<\/a> 2022  on 31 Oct at 15:05 HK time when the <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/BISInnovationHub?src=hash&amp;ref_src=twsrc%5Etfw\">#BISInnovationHub<\/a> team in Hong Kong present Project Aurum, a prototype <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/technology\/\" data-internallinksmanager029f6b8e52c=\"4\" title=\"Technology\" target=\"_blank\" rel=\"noopener\">technology<\/a> stack for retail <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hashtag\/CBDC?src=hash&amp;ref_src=twsrc%5Etfw\">#CBDC<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/hkmagovhk?ref_src=twsrc%5Etfw\">@hkmagovhk<\/a> <br \/>Read more: <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/e3wJMWngv8\">https:\/\/t.co\/e3wJMWngv8<\/a> <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/t.co\/fnxbxAN576\">pic.twitter.com\/fnxbxAN576<\/a><\/p>\n<p>\u2014 Bank for International Settlements (@BIS_org) <a rel=\"nofollow noopener\" target=\"_blank\" href=\"https:\/\/twitter.com\/BIS_org\/status\/1583434680028008449?ref_src=twsrc%5Etfw\">October 21, 2022<\/a><\/p><\/blockquote>\n<p><script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>Retail transactions are performed with aliases. Only the intermediary that performs Know Your Customer functions can see the identity of users. Unspent transaction output records are used to track digital currency ownership anonymously through multiple transactions as a safety measure in case of commercial bank bankruptcy.<\/p>\n<p><strong><em>Related: Not like China: Hong Kong reportedly wants to legalize crypto trading<\/em><\/strong><\/p>\n<p>Hong Kong launched its CBDC research in June 2021 as part of its comprehensive Fintech 2025 Strategy. The monetary authority is\u00a0pursuing retail and wholesale CBDC implementation separately. It noted earlier that the retail CBDC has no \u201cimminent role\u201d to play in the payments market, but use cases may emerge quickly. Aurum is the first project completed by the BIS Innovation Hub.<\/p>\n<p><template data-name=\"subscription_form\" data-type=\"law_decoded\"><\/template><\/p>\n<\/div>\n<blockquote><p><strong><span style=\"color: #ff6600;\">If you liked the article, do not forget to share it with your friends. Follow us on\u00a0<span style=\"color: #ff0000;\"><a style=\"color: #ff0000;\" href=\"https:\/\/news.google.com\/publications\/CAAqBwgKMLG0nwswvr63Aw\" target=\"_blank\" rel=\"nofollow noopener noreferrer\">Google News<\/a><\/span>\u00a0too, click on the star and choose us from your favorites.<\/span><\/strong><\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\">For forums sites go to <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/forum.buradabiliyorum.com\/\" target=\"_blank\" rel=\"noopener\">Forum.BuradaBiliyorum.Com<\/a><\/span><\/strong>\n<\/p><\/blockquote>\n<blockquote>\n<p style=\"text-align: center;\"><strong>If you want to read more <a href=\"https:\/\/buradabiliyorum.com\/en\/category\/news\/\" data-internallinksmanager029f6b8e52c=\"2\" title=\"News\" target=\"_blank\" rel=\"noopener\">News<\/a> articles, you can visit our <span style=\"color: #ff9900;\"><a style=\"color: #ff9900;\" href=\"https:\/\/en.buradabiliyorum.com\/general\/\" target=\"_blank\" rel=\"noopener\">General category.<\/a><\/span><\/strong><\/p>\n<\/blockquote>\n<p><span style=\"color: black;\"><a style=\"color: #ff9900;\" href=\"https:\/\/cointelegraph.com\/news\/hong-kong-unveils-completed-retail-cbdc-project-that-has-a-cbdc-backed-stablecoin\" target=\"_blank\" rel=\"noopener\">Source<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"<p>&#8221; Hong Kong unveils completed retail CBDC project that has a CBDC-backed stablecoin &#8220; The Hong Kong Monetary Authority presented its completed Aurum retail central bank digital currency (CBDC) prototype on Oct. 21. The system, developed in conjunction with the Bank for International Settlements (BIS) Innovation Hub, has a unique structure that reflects the intricacies&#8230;<\/p>\n","protected":false},"author":1,"featured_media":502912,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"fifu_image_url":"https:\/\/images.cointelegraph.com\/images\/1200_aHR0cHM6Ly9zMy5jb2ludGVsZWdyYXBoLmNvbS91cGxvYWRzLzIwMjItMTAvZjAxYzc4NDEtYTc0ZS00ODY4LTg0NzgtMDk3OTA2MTNlOWFjLmpwZw==.jpg","fifu_image_alt":"","footnotes":""},"categories":[1],"tags":[75046,75493,74355,43256],"class_list":["post-502911","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-general","tag-cbdc","tag-stablecoin","tag-adoption","tag-hong-kong"],"_links":{"self":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/502911","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/comments?post=502911"}],"version-history":[{"count":0,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/posts\/502911\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media\/502912"}],"wp:attachment":[{"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/media?parent=502911"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/categories?post=502911"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/buradabiliyorum.com\/en\/wp-json\/wp\/v2\/tags?post=502911"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}