According to the South China Morning Post Thailand and Hong Kong are collaborating on a two-tier digital token as part of the process for creating a prototype for cross-border fund transfers between the two economies using financial technology (fintech).

Under a two-tier issuing system, the Hong Kong Monetary Authority will work with banks as the issuer and distributor of its digital currency

Hong Kong and Thai central banks are exploring blockchain-backed digital currencies to facilitate quicker payment in bilateral trade, at US$19.6 billion in 2018

The monetary authorities of Hong Kong and Thailand are poised to roll out a two-tier digital token, part of the process for creating a prototype for cross-border fund transfers between the two countries using financial technology, or fintech.

The first tier of the prototype, known as Project LionRock-Inthanon , involves the issuance of a token to Hong Kong banks taking part in the pilot programme, according to a spokesman of the Hong Kong Monetary Authority (HKMA). The second tier involves the banks distributing the tokens to their corporate customers for settling wholesale payments with other banks, or with other companies.

“The prospect of issuing a central bank digital currency for retail purpose in Hong Kong is limited, as we have so many retail payment services (ranging from) credit card, debit card, and (others),” Lau said during a panel discussion at the Hong Kong fintech Week last month.

As I have said before, Asia is the place to watch. I think Asia will be the World Finance Centre within the next decade as Western Economies implode.