To achieve green investment, the Bank for International Settlements (BIS) and the Hong Kong Monetary Authority (HKMA) issued token bonds
BIS statement said this is the first green finance project initiated by the BIS Innovation Center and is only combining blockchain, smart contracts, Internet of Things and digital assets to realize possible green investments. The work is being guided by panels of experts from the public and private sectors, civil society and the international community, according to
BIS. In many countries, bond issuance and investment can be cumbersome and complex, involving many steps and parties, often requiring considerable financial commitments from investors. For those investing in green projects, there is uncertainty about whether bond issuers are delivering the green impact they promised at the time of the issue; And for retail investors, there is usually no liquid and transparent secondary market." The Hong Kong Centre for BIS Innovation and the Hong Kong Monetary Authority (HKMA) are working with the technology industry to promote transparency in the use of proceeds through Project Genesis, thereby contributing to the achievement of regional and global environmental and sustainable development goals. "Green and digital are not only interconnected but interdependent, and climate change involves complex collective action, so green finance is a key priority for the BIS Innovation Centre, of which Project Genesis is an integral part." Benoit Cœ ure, director of THE BIS Innovation Center at
, said: "You can download the app to your mobile phone and invest any amount in safe, government-developed green bonds, such as solar or wind farms. Over the life of the bond, you can not only see the accrued interest, but also track how much clean energy is generated and the resulting reduction in carbon dioxide emissions related to your personal investment. In addition, you can sell bonds in a transparent market.