In a groundbreaking collaboration, the Hong Kong Monetary Authority (HKMA), the Bank for International Settlements (BIS) Hong Kong Centre, and the Bank of Israel (BOI) have joined forces to explore the potential of Central Bank Digital Currencies (CBDC). This initiative, known as “Project Sela,” aims to create an advanced CBDC ecosystem that prioritizes privacy, security, and decentralization.Project Sela is redefining the relationship between the public and private sectors by dividing responsibilities. The central bank will manage the ledger and user accounts, while private sector intermediaries will handle customer interactions and ensure regulatory compliance. This innovative approach is expected to foster innovation, increase competition, and enhance service quality.One notable aspect of Project Sela is the introduction of “Access Enablers” (AEs). These specialized entities will focus solely on customer relations, rather than managing or holding the digital currency themselves. The entire system is built on the central bank’s balance sheet, ensuring that each transaction is free from credit risk. This streamlined arrangement has the potential to expand the range of payment processors and stimulate competition in the market.Cybersecurity is a top priority for Project Sela. The initiative is committed to protecting the integrity of the system by drawing on Israel’s expertise in cybersecurity and leveraging lessons learned from Hong Kong’s initiatives. The goal is to strike a balance between widespread access and impeccable security.Overall, Project Sela represents a significant step forward in the exploration of CBDCs. By combining the agility of the private sector with central bank oversight, this initiative aims to create a robust and secure CBDC ecosystem that can drive innovation and improve financial services.

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Information	Details
Geography	Asia
Countries	🇭🇰 🇮🇱
Sentiment	positive
Relevance Score	1
People	None
Companies	Bank of Israel (BOI), Bank for International Settlements (BIS) Hong Kong Centre, Hong Kong Monetary Authority (HKMA)
Currencies	None
Securities	None