BIS collaborates on digital green bond infrastructure

The International Resettlement Bank (BIS) in Hong Kong has announced that it will build a digital infrastructure protocol to support green investment in collaboration with the Hong Kong Financial Authority (HMA) and six technology companies.

This joint project, Project Genesis, provides the backbone for sustainable investment, providing more transparency on how green investment initiative revenue is used, thus helping the industry achieve sustainable goals in Asia-Pacific and internationally.

Six partner companies have been selected to build digital infrastructure for Project Genesis. Swiss-based digital assets will partner with GFT Technologies in Hong Kong to deploy a number of licensed blockchain chains.

At the same time, the Liberty Consortium offers a public-approved blockchain that includes SC shares, standard charter and shared assets.

Hong Kong Launcher Allinfra also provides technology-proven information that can monitor the environmental impact of these green projects in real time.

The first green finance project, approved at the BSC Innovation Center, Genesis supports the simulation of green bonds, allowing bond investments to be split and traded in smaller denominations.

“Green and digital are not only interconnected but also mutually supportive – the fate of one depends on the other,” says Benoit Kure, head of the BSS Innovation Center. Accordingly, green finance is a key priority for the BIS innovation center, and Genesis is an important part of that.

“HKMA welcomes collaboration with BIS Innovation in this new experiment on modernization and technology synergy:

Technologies such as blockchain and smart contracts, combined with the Internet of Things, can facilitate the bonding process, improve efficiency in distribution and report on the use and impact of green bond revenues, which can increase transparency for green bond investors.

The vision is that an investor can invest in government bonds, which are financially supported by a green project – and through a downloadable app or otherwise the investor can track the interest and purity accumulated over the investment age. Benedict Nolens, head of the BSS Innovation Center at BSS Innovation, explains energy generation and the reduction of CO2 emissions associated with private investment.

After conducting design planning workshops, development teams from the participants are now working on sampling of repetitive sports (short, efficient project stages).

Test results and prototype tests are expected to be published in Q4 2021.


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