The Hong Kong Monetary Authority (HKMA) has taken a significant step towards advancing the development of a Central Bank Digital Currency (CBDC) by establishing the CBDC Expert Group. As part of the initiative, the HKMA has signed Memorandums of Understanding with five local universities, including PolyU.

The CBDC Expert Group brings together experts from academic disciplines relevant to the HKMA’s research efforts, including business, computer science, economics, finance and law. The primary objective of the Group is to encourage collaboration and knowledge exchange between academia and the HKMA in CBDC research. The Group will also support the HKMA’s exploration of key relevant policy and technical issues.

Among the 12 founding members of the Group are Prof. Allen Man Ho Au and Prof. Daniel Xiapu Luo, both distinguished professors from PolyU’s Department of Computing. These researchers have already embarked on two research papers. The first investigates privacy issues surrounding CBDC, examining the efficacy of different types of privacy-enhancing technologies using the prototype in Project Aurum. The second focuses on CBDC interoperability, assessing the viability of blockchain technologies and related standards in facilitating compatibility between different CBDC implementations.

Prof. Au and Prof. Luo expressed their excitement about joining the Group, emphasising their commitment to conducting pioneering research that instils public trust in CBDC by tackling privacy and security challenges, and reinforcing their dedication to driving the further development of Hong Kong’s financial system.