The Hong Kong Monetary Authority (HKMA), along with the Bank of Israel (BOI) and the Bank for International Settlements (BIS) Innovation Hub Hong Kong Centre, announced the publication of a joint report titled "Project Sela - An accessible and secure retail CBDC ecosystem", at a launch event in Tel Aviv on Sept 12. This marks the first-ever collaborative project between the HKMA and the BOI on the fintech front.
As per the HKMA's news release on this topic, Project Sela demonstrated the technical feasibility of a retail central bank digital currency (CBDC) architecture that can promote competition and innovation in digital payments by allowing nonbank payment intermediaries to connect directly to the CBDC ledger of the central bank. Leveraging distributed ledger technology, a proof-of-concept prototype was developed to showcase how the technical implementation of the proposed architecture can incorporate strict cybersecurity, legal and policy requirements.
Source: China Daily