Banking entities located in China, Thailand and the United Arab Emirates, together with the Hong Kong Monetary Authority have strengthened cooperation for the creation of a cryptographic pilot plan called the Multiple Central Bank Digital Currency Bridge, as reported on Wednesday the People’s Bank of China (PBOC).
The main objective of the project will be set to evaluate the application of m-CBDC Bridge in the field of cross-border payment, international trade settlements and foreign exchange transactions.
Hong Kong-based Bank for International Settlements Innovation also joined the project, helping with the improvement of cross-border capital transfers.
This pilot plan is expected to set the stage for central banks in Asia and other regions to conduct joint research and to leverage payment capabilities.
The intention of this advance is to solve problems such as low efficiency, low transparency and high costs, the PBOC reported.