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Several major Asian banks are jointly developing a cross-border central bank digital currency (CBDC), according to a Hong Kong government announcement.

The Multiple Central Bank Digital Currency Bridge (m-CBDC) project brings together the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates and the Digital Currency Institute of the People’s Bank of China with the aim of creating a CBDC prototype using distributed ledger technology, Cointelegraph reports.

Progressing from the “Inthanon-LionRock” research project that began in 2019, the latest phase will focus on developing a proof-of-concept to “facilitate real-time cross-border foreign exchange payment-versus-payment transactions in a multi-jurisdictional context and on a 24/7 basis,” according to the announcement.

The project will attempt to address “pain points” encountered when conducting cross-border transfers, including cost inefficiencies and the complex regulations governing money transfers.