Hong Kong’s Central Bank Announces New Wholesale CBDC to Support Tokenization Market

Hong Kong’s Central Bank has announced the launch of a new project aimed at developing a wholesale central bank digital currency (wCBDC) to support the growth of the tokenization market. Known as Project Ensemble, the initiative aims to explore innovative financial market infrastructure that will enable seamless interbank settlement of tokenized money through the wCBDC. The initial focus of the project will be on tokenized deposits. The Hong Kong Monetary Authority (HKMA) stated that while a retail CBDC could have unique advantages, more research is required before a decision can be made on introducing an e-HKD. This news is still developing, and more information will be revealed in the future.