A partnership between the Central Bank of Brazil (BC) and the Hong Kong Monetary Authority (HKMA) will test tokenized cross-border payments through Drex.
The Ensemble project will connect with the Drex pilot and platform to realize and explore cross-border payment-versus-payment (PvP) and delivery-versus-payment (DvP) settlement use cases in areas such as trade finance and carbon credits.
HKMA and BC signed innovation pact in 2018
The initiative between the regulators began in 2018 in a Cooperation Agreement signed by the HKMA and the Central Bank. All to promote innovation in financial services in both markets – Brazil and Hong Kong. Currently, the experiments involve CBDCs and tokenized assets.
The aim is to establish, above all, industry standards to enable interoperability between wholesale CBDC (Central Bank Digital Currency) (wCBDC), tokenized money and tokenized assets.
In August this year, the HKMA launched the Ensemble Sandbox to conduct experiments with industry participation in four main areas: fixed income and investment funds, liquidity management, green and sustainable finance, and trade and supply chain finance.
In September, the Central Bank announced 13 themes for the second phase of the Drex pilot, its CBDC. Based on Drex, the pilot seeks to boost the development of a tokenized financial market in Brazil. The Drex platform is being developed in partnership with more than 70 companies, involving a wide range of participants in the financial sector.
The seed of collaboration between HKMA and BCB, planted a few years ago, has now blossomed. The Ensemble Project is all about collaborating with industry partners to advance the tokenization market. In this sense, BC is an excellent partner, especially because we share a common vision of driving the future of the financial industry through technology. We are both taking concrete steps to turn this vision into reality, explains Eddie Yue, CEO of HKMA.
Therefore, for the president of the Brazilian Central Bank, Roberto Campos Neto, the collaboration with the HKMA is an important step in this new phase in the construction of Drex.
“Participating in cross-border experiments and debates is essential to help create an even more integrated global financial market. We therefore consider the connection of two jurisdictions on opposite sides of the globe to be symbolic,” he said.
The article Hong Kong Central Bank and Monetary Authority to Test Tokenized Payments with Drex appeared first on BeInCrypto Brasil.
