China, UAE join Thailand and HK in central bank digital currency project
China and the United Arab Emirates have joined the Bank of Thailand (BOT)’s joint central bank digital currency (CBDC) project. Named Project Inthanon-LionRock, the cross-border digital transaction scheme is a joint project with the Hong Kong Monetary Authority (HKMA).
On Tuesday, the People’s Bank of China and the Central Bank of the United Arab Emirates announced they had joined the project, which has now been renamed the Multiple CBDC Bridge (m-CBDC Bridge).
The m-CBDC Bridge project will use distributed ledger technology (DLT) to develop a prototype for real-time cross-border foreign exchange transactions on a 24/7 basis, said its four central-bank members. It will also encourage more central banks in Asia and other regions to jointly study the potential of DLT in enhancing the financial infrastructure for cross-border payments. The aim is to alleviate pain points in cross-border fund transfers, such as inefficiencies, high cost and complex regulatory compliance.