Hong Kong: Published findings on the Bank of Israel, Hong Kong Monetary Authority and Bank for International Settlements Project Sela Experiment

On 12 September, the Bank of Israel announced it jointly conducted an experiment with the Hong Kong Monetary Authority and the Bank for International Settlements (BIS). The main goal of the Project Sela Experiment was to determine whether the retail central bank digital currency (rCBDC) ecosystem weakens cyber security. The central bank controlled the retail ledger in the experiment, and an access enabler as an intermediary was introduced. The access enabler operates customer-facing rCBDC services but does not control the customers' rCBDC. In conclusion, the banks found that the project could support access, cyber security and competition while preserving the advantages of physical cash.