Bank for International Settlements finalized prototypes platforms for CBDC

The regulator reported the development of a pilot version of payment platforms in partnership with other central banks

23.03.2022 - 07:15

289

1 min

What’s new? The Bank for International Settlements (BIS), in cooperation with the central banks of Malaysia, Singapore, Australia, and South Africa, has finalized two prototypes of central bank digital currency (CBDC) platforms. The BIS representatives announced this in a press release on the bank’s website.

The full version of the press release

“Project Dunbar scoped out three key challenges of implementing a platform – access, regulation compatibility, and governance. Practical design solutions were proposed on these issues.”

What is known about the results? The BIS has confirmed that with CBDC, the financial institutions will be able to use issued cryptocurrencies for direct operations with each other. This solution will improve the efficiency of transactions and reduce the economic costs of international payments.

What had happened before? In mid-March, the Bank of Uganda (BOU) began exploring the possibility of issuing a national digital currency to make financial transactions more efficient and reduce the cost of cross-border transfers.

Central Bank Digital Currency (CBDC) is a virtual form of the country’s official currency.

Author: