Banking Authorities and Private Sector Collaborate on Wholesale CBDC
BIS Innovation Hub, BDF, and SNB announced that, together with a private-sector consortium led by Accenture, they will conduct an experiment using wholesale central bank digital currency (wCBDC) for cross-border settlement. The private-sector consortium includes Credit Suisse, Natixis, R3, SIX Digital Exchange, and UBS. Known as Project Jura, the experiment will investigate the potential benefits and challenges of wCBDC in settling cross-border payments and digital financial instruments. This project is a part of a series of CBDC experiments announced by the BDF in July 2020.
The experiment will explore cross-border settlement with two wCBDCs and a French digital financial instrument on a distributed ledger technology (DLT) platform. It will involve the exchange of the financial instrument against a euro wCBDC through a delivery versus payment (DvP) settlement mechanism and the exchange of a euro wCBDC against a Swiss franc wCBDC through a payment versus payment (PvP) settlement mechanism. These transactions will be settled between banks domiciled in France and in Switzerland, respectively. According to the BIS Innovation Hub Head, Benoît Cœuré, "The G20 has made enhancing cross-border payments a priority and laid out a multi-year roadmap to coordinate efforts. The experiment contributes to this work by exploring how wCBDC could enhance speed, efficiency and transparency in cross-border use cases. "
Related Link: Press Release
Keywords: International, Europe, Switzerland, France, wCBDC, Central Bank Digital Currency, Fintech, Accenture, Project Jura, Cross-Border Payments, Delivery Versus Payment, Payment Versus Payment, CBDC Experiment, Distributed Ledger Technology, DLT, BIS Innovation Hub, SNB, BIS, BDF
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