HK Central Bank invited ConsenSys to participate in the development of CBDC

Joseph Lubin’s enterprise will start testing the solutions for the CBDC project and will be involved in Phase 2 of the Inthanon-LionRock initiative.

Ethereum incubator ConsenSys received an award from the HKMA for its research on cryptocurrency. Joseph Lubin’s company stated that they are going to develop a Proof of Concept (PoC) project for the HKMA digital currency.

A PoC is essentially a demonstration of the feasibility of a method. PoC is used to test theoretical calculations and proposals in practice before starting a full development.

On the PoC project, ConsenSys is going to start working in conjunction with the audit and consulting company PwC and the company Forms HK. In particular, the companies will be involved in the second phase of the Inthanon-LionRock project launched by the Bank of Thailand (BoT)in 2018.

The Inthanon initiative, which BoT is working on in partnership with the R3 consortium and eight commercial banks, is a blockchain geared towards interbank settlements. In 2019, HKMA and BoT agreed on cooperation and Inthanon has a department focused on applying CBDC for crossborder settlements.

Inthanon-LionRock project architecture. Source: HKMA

The South African Reserve Bank later joined the initiative and contributed to it with ConsenSys on the Khokha project. The latter is an experimental platform for testing blockchain projects.

Recall that earlier JPMorgan invested a large amount of money in Lubin’s company and transferred its blockchain division, Quorum, under its management. ConsenSys, in turn, took over the responsibility for the technical development and support of projects based on this enterprise blockchain.

It is not known how much the investment bank has invested in ConsenSys, but it was previously reported that the company is going to open a funding round, during which it expects to raise $ 50 million. JPMorgan, which was supposed to be the lead investor of the round, was expected to invest $ 20 million in ConsenSys.

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