Hong Kong taps ConsenSys for phase 2 of digital currency development

  • ConsenSys to take over phase two of project Inathon-LionRock
  • The blockchain firm will team up with PwC and HK Forms
  • Project involves the execution of a cross-border proof-of-concept

Project Inathon-LionRock is about to enter phase two as Hong Kong taps ConsenSys blockchain firm to take finalize the development. Hong Kong’s finance regulator singled out ConsenSys to finalize the execution of a CBDC to a cross-border proof-of-concept in phase two of the Inathon-LionRock fintech project.

Notably, Inthanon refers to the distributed ledger technology of Thailand’s CBDC, while LionRock is Hong Kong’s CBDC version. The Hong Kong Monetary Authority (HKMA) commenced the digital currency development initiative last year jointly with the Thai central bank, to evaluate the execution of a CBDC to international settlements. As per the official statement, ConsenSys disclosed it would team up with PriceWaterhouseCoopers and HK Forms on the PoF.

Hong Kong taps consenSys technology

The execution of DLT comprises avoiding the current banking system and permitting inter-bank direct transfers. The objective is to form a link connecting Inathon and LionRock and implement an international settlement protocol, to subdue the problems faced today in cross border transactions such as policies, expenses, and backtracking.

Moreover, ConsenSys has participated in digital currency development before. The Ethereum studio is among the entities contracted by Singapore’s financial regulator for its CBDC concept. Furthermore, the ConsenSys worked with the central bank of South Africa for project Khokha to create a robust, low cost potent inter-bank network on utilizing DLT. As Hong Kong taps ConsenSys for its digital currency project, its experience in the field explains the decision.

Consensys to spearhead Inathon-LionRock phase two

As per the official statement, ConsenSys will utilize its commercial stack to evaluate the PoF solutions, with more weight placed on three vital factors in the scalability, interoperability, and security of the solution. Furthermore, the blockchain firm justified its adoption of Ethereum solutions stating that the network is perfect for digital currency development based on scalability and privacy.

The Inathon-LionRock is a fintech partnership between the HKMA and the central bank of Thai. Furthermore, some other ten commercial banks were included in the project back in May last year. The pilot project run between financial institutions earlier this year produced excellent results, hence phase two of the project.

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