The prototype of Hong Kong’s national digital currency has been released!

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Hong Kong also joined the list of countries with national digital currency. Prototype of Hong Kong’s national digital currency Published on October 21 by the Finance Department and the BIS Center.

Hong Kong Financial Authority and BIS Innovation Center to unveil Prototype of Hong Kong’s national digital currency They cooperated with each other. Aurum project is the first activity of BIS center.

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Hong Kong’s national digital currency

The Financial Bureau presented the Hong Kong government’s CBDC prototype on October 21. The national digital currency of Hong Kong Arum (Aurum) is called. The Arum digital currency system was developed by the BIS Innovation Center. Hong Kong’s national digital currency has a unique structure. This cryptocurrency showcases the intricacies of Hong Kong’s current money issuance system.

Aurum cryptocurrency It consists of a wholesale interbank system and a retail e-wallet. CBDC e-wallet Hong Kong was created by a local bank and has a smartphone interface. The validation system of this cryptocurrency also prevents the bank from issuing too much money as well as double redemption of users.

The prototype of Hong Kong's national digital currency has been released!

Retail version of Aurum It will be used in electronic wallets. CBDC-based stablecoins are also used in the interbank system. These CBDC-backed stablecoins digitally reflect the currency system in Hong Kong.

Aurum cryptocurrency activity structure

In the Hong Kong financial system, banknotes are issued by three major institutions. All the banknotes issued in Hong Kong are under the supervision of the central bank, like other countries in the world. The national digital currency is the direct debt of the central bank; While stablecoins are debts of the issuing bank. These assets are at the disposal of the central bank.

Supply of supported stablecoins CBDC So far, it has not been done in Hong Kong. The unveiling of Hong Kong’s national digital currency prototype is likely to complement Hong Kong’s growing research into private sector stablecoins.

Aurum stablecoin structure It is very different from other stablecoins. Aurum inventory is adaptive; While the gross bank settlement balance (RTGS) is regulated by the agreement of the issuing bank and the central bank.

Is Hong Kong’s digital currency decentralized?

Retail transactions of Hong Kong’s national digital currency are conducted under aliases. Only the authentication system (KYC) is able to see the identity of users. Records of unspent transactions can be traced to track ownership of digital currency through various transactions. This security measure will be used in case of bank failure.

Hong Kong opened its CBDC Research Center in June 2021. This center is part of Hong Kong’s comprehensive fintech strategy in 2025. Hong Kong authorities will monitor the activities of the CBDC’s wholesale and retail sectors separately. Aurum cryptocurrency It is the first project completed by BIS Technology Center.

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Source: cointelegraph

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