Hong Kong to research retail CBDC cybersecurity with Israel, BIS

The Hong Kong Monetary Authority (HKMA) introduced a joint research job with the Bank of Israel (BOI) and the Financial institution for Intercontinental Settlements Innovation Hub (BISIH) Hong Kong Centre to review cybersecurity problems in retail central bank digital currencies (CBDCs).

See related post: Hong Kong now exploring retail CBDC in forthcoming Challenge Aurum

Rapid facts

• “Project Sela” will take a look at the security of two-tiered retail CBDCs from cyber attacks, Hong Kong’s de facto central financial institution claimed in a press release. 

• Hong Kong has been exploring a two-tier distribution model by means of Venture Aurum — a framework wherever CBDCs are issued to the community by means of business financial institutions and payment service companies.
• Hong Kong kicked off e-HKD exploration last June, and has since launched the CBDC’s specialized and policy patterns.

• “Providing an effective payment process that will boost levels of competition in the payment industry is just one of the most important motivations we have identified for a attainable issuance of a electronic shekel — an Israeli CBDC,” BOI Deputy Governor Andrew Abir claimed.
• Israel has been a technological know-how source for mainland China’s CBDC, with fintech company Bitmint becoming a member of the digital yuan task at the early levels of investigation and progress.
• Undertaking Sela is predicted to be done by the conclude of this 12 months, according to the press release.

See linked post: Why a Hong Kong CBDC is coming — for institutions