Hong Kong Monetary Authority Report: Project Sela Can Promote Competition and Innovation in the Digital Payment Sector

ChainCatcher news, the Hong Kong Monetary Authority, in collaboration with the Bank of Israel and the Bank for International Settlements Innovation Hub (BISIH) Hong Kong Centre, published the report "Project Sela - A Widely Usable and Secure Retail Central Bank Digital Currency Ecosystem" and participated in the launch event hosted by the Bank of Israel in Tel Aviv.

It is reported that Project Sela is the first fintech collaboration project between the Monetary Authority and the Bank of Israel. Project Sela demonstrates the technical feasibility of non-bank payment intermediaries directly connecting to the central bank digital currency ledger through the design structure of retail central bank digital currency, thereby promoting competition and innovation in the digital payment sector. The project established a proof-of-concept prototype using distributed ledger technology (DLT), proving that the design structure can meet stringent cybersecurity, legal, and policy requirements in technical execution.

HKMA Vice President Li Dazhi stated, "We are pleased to have successfully completed Project Sela with the Bank of Israel and the BISIH Hong Kong Centre. The project has provided valuable and practical insights into the implementation of retail central bank digital currency in terms of cybersecurity, technology, and policy. Although the HKMA has not decided whether or when to launch the digital Hong Kong dollar, the results of Project Sela are of reference value for our ongoing research. We hope the project can also assist other central banks in evaluating different design structures for retail central bank digital currencies."