The central banks of Thailand and Hong Kong have been looking into cryptocurrency use cases and are intending to publish their joint research report by the first quarter of next year.
The Hong Kong Monetary Authority (HKMA) revealed the news at an event on November 6, as revealed by local news agency EJ Insight. The HKMA and the Bank of Thailand (BoT) partnered in May 2019 for researching the advantages and risks of introducing a central bank digital currency (CBDC).
The HKMA and the BoT have also been independently looking into a wholesale CBDC by means of their projects LionRock and Inthanon, respectively. In collaboration, the two central banks have been particularly looking on the most proficient method to facilitate payment-versus-payments (PvP) settlement among banks in Hong Kong and Thailand, utilizing a wholesale CBDC.
The HKMA has additionally partnered with the digital currency research institute of the People’s Bank of China for certain projects, per the EJ Insight report.
HKMA senior executive director Edmond Lau stated that the central bank is centered around the institutional side of cryptocurrency and doesn’t see a need to release it to retail clients. At the end of the day, the HKMA wants to utilize cryptocurrency for local interbank payments, corporate payments at the wholesale level, and securities settlement.
The BoT has been dealing with Inthanon since August 2018, while the HKMA has been working at LionRock since 2017.