On November 3, on the occasion of Hong Kong Fintech Week, with the support of the Bank for International Settlements Hong Kong Innovation Center, the People’s Bank of China

Digital Currency Research Institute, the Hong Kong Monetary Authority, The Bank of Thailand and the Central Bank of the United Arab Emirates*** jointly released a use case manual for the Multilateral Central Bank Digital Currency Bridge project, which briefly introduced the project application scenarios and testing progress.

1. Development History

The Multilateral Central Bank Digital Currency Bridge project was originally a bilateral pilot project between the Bank of Thailand and the Hong Kong Monetary Authority.

In 2017, the Hong Kong Monetary Authority began to study the central bank’s digital currency project and named the project LionRock, which means Lion Rock.

Lion Rock is a famous mountain in Hong Kong that is shaped like a lion. Hong Kong is also known as the "Lion" that actively and positively inspires people.

In August 2018, the Bank of Thailand released It launched its central bank digital currency (CBDC) project called Inthanon, in which 8 commercial banks in the country participated. The author checked relevant information and found that Inthanon seems to represent Doi, a mountain in Chiang Mai, Thailand.

Inthanon is the highest mountain in Thailand.

In May 2019, two CBDCs in Hong Kong and Thailand conducted a "mountain-mountain alliance" and launched the Inthanon-LionRock project.

Aims to study the application of CBDC in cross-border payments.

In September 2019, the first phase of the Inthanon-LionRock project was launched and completed in December of that year. The main reason is the openness of technology. The two parties, together with ***10 participating banks from two places, successfully developed a project based on Distributed Ledger Technology (DLT). Proof-of-concept prototype.

2. What is the principle?

In September 2021, the Bank for International Settlements Hong Kong Innovation Center released "Inthanon-LionRock to mBridge: Building

< p>a multi CBDC platform for international payments" (hereinafter referred to as the "report") phase summary report

The report shows that mBridge was born out of the Inthanon-LionRock stage, and the technical principles and some concepts have been inherited.

Inthanon-LionRock. mBridge will also adhere to the three principles of non-harm, compliance and interoperability to "target high cost, low speed and complex operability." Pain point issues, designing and iterating a new generation of efficient cross-border payment infrastructure as the overall goal.

3. The system construction of mBridge has 3 E-layer system:

The first layer is the core layer: this layer includes the blockchain distributed ledger technology (blockchain ledger) and its Relevant data is also the implementation layer of smart contract logic programming.

Layer 2 is the back-end application layer: providing identity recognition, permission access, routing functions, wallet signature, key management, foreign exchange exchange mechanism, etc. for layer 1.