The possibility of Hong Kong creating its own state cryptocurrency was reported back in the spring of 2021, but now the city authorities have presented a full-fledged and completed Aurum project.
The project was created jointly with the Innovation Center of the Bank for International Settlements (BIS). The drafters of the document emphasize that when creating the Aurum project, a unique CBDC structure was developed, which reflects the needs and specifics of the currency in the special administrative region of the PRC.
As part of the Aurum project, it is proposed to create an interbank digital asset exchange system and an electronic wallet for retail consumers. The system of validators will avoid the possibility of excessive issuance of tokens and other errors.
Like fiat currency, Aurum will be issued by three financial institutions in Hong Kong, and the Central Bank of the city will deal with the collateral. At the same time, within the framework of the project, it is planned to launch two options for a digital asset – retail tokens for everyday payments and stablecoins for interbank settlements.
“There has never been a stablecoin backed by a state cryptocurrency. We decided that this type of asset could complement the growing realm of private stablecoins. Aurum differs from private stablecoins in that its balance is reconciled with the balances of real-time gross settlements (RTGS) of the issuing bank and the Central Bank,” the document emphasizes.
Recall that research for the creation of the state cryptocurrency Aurum began in March last year.
Source: Bits
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