HKSTP Supports the HKMA’s new Wholesale Central Bank Digital Currency Project

(Hong Kong, 7 March 2024) – Hong Kong Science and Technology Parks Corporation (HKSTP) expresses its steadfast support for the Hong Kong Monetary Authority’s (HKMA) new Wholesale Central Bank Digital Currency (wCBDC) project. This collaboration underscores HKSTP's commitment to driving the digital transformation of financial market infrastructure through advanced data services and rigorous data governance while anticipating the future needs of the financial industry and establishing the industry standard for digital asset market.

Wholesale Central Bank Digital Currency (wCBDC)  is used to facilitate interbank settlement Issued by a central bank for financial institutions, wCBDCs ensure secure and efficient settlements. A wCBDC sandbox will be built in the project to provide Hong Kong with a cutting-edge platform to lead in the arena of asset tokenisation and will pave the way for innovative solutions that can be scaled globally.

HKSTP has been focusing on data service innovations and implementing rigorous data governance standards. HKSTP will join forces with HKMA and leading data governance experts and is committed to establishing robust governance protocols to ensure the integrity, security, and compliance of crucial data within the tokenised asset ecosystem, paramount in maintaining public trust and the currency's credibility.

In collaboration with key industry stakeholders, including corporate partners and FinTech pioneers from Hong Kong’s largest I&T ecosystem, HKSTP helps explore potential use cases and applications. By leveraging a secure Data Exchange Platform, it provides a conducive environment for FinTech solutions to thrive, acting as a sandbox where proof-of-concept trials for wCBDC solutions can be conducted and validated.

Albert Wong, CEO of HKSTP, said: “Hong Kong is at the cutting edge of digital financial innovation. Our collaboration with the HKMA on the Wholesale Central Bank Digital Currency (wCBDC) will support the development of Hong Kong's digital economy ambitions and the HKMA's vision for wCBDC of exploring tokenised financial ecosystem in Hong Kong. The future monetary system will depend on wholesale central bank money as its foundation, complemented by tokenised deposits and assets. HKSTP’s expertise in integrating data and technology in developing the data governance and technological infrastructure is vital in constructing and sustaining public trust and engagement with CBDCs, in partnership with regulators, banks and FinTech companies.”

HKSTP will actively explore the potential of leveraging wCBDC to drive sustainable finance practices that focus on efficiency, security, and efficacy. Pilot projects will focus on three key areas: Environmental, Social, and Governance (ESG), Supply Chain, and Patent-related innovations.

HKSTP is cultivating our park companies to commercialise their FinTech solutions from innovation ideas and solutions to market adoption. The wCBDC project is a testament to HKSTP's pioneering spirit and dedication to nurturing top technological talent, such as Blockchain/DLT talent, and tech ventures. This commitment aligns with the city's strategic vision to create a seamless digital economy and foster an open digital finance ecosystem, propelling Hong Kong's position as an international FinTech powerhouse.