BIS and SNB Sign Agreement on Innovation Hub Center in Switzerland
BIS and SNB signed an operational agreement on the BIS Innovation Hub Center in Switzerland. The initial two projects the Hub will work on involve the integration of digital central bank money into a distributed ledger technology infrastructure and the effective tracking and monitoring of fast-paced electronic markets.
The first project of the Swiss Center will examine the integration of digital central bank money into a distributed ledger technology infrastructure. This new form of digital central bank money would be aimed at facilitating the settlement of tokenized assets between financial institutions. Tokens are digital assets that can be transferred from one party to another. The project will be part of a collaboration between the SNB and the SIX Group in the form of a proof of concept. The second project will address the rise in requirements placed on central banks to be able to effectively track and monitor fast-paced electronic markets. These requirements arise not only from the greater automation and fragmentation of the financial markets, but also from the increased use of new technologies.
The Hub will identify and develop in-depth insights into critical trends in technology affecting central banking; develop public goods in the technology space geared toward improving the functioning of the global financial system; and serve as a focal point for a network of central bank experts on innovation. Agustín Carstens, General Manager of the BIS, said: "We are very proud that one of the first three Hub Centers will be here in Switzerland, where the BIS has been based for nearly 90 years. Switzerland is a hotbed of innovation. This comes on top of its overall competitiveness, well-established financial ecosystem, and strong academic institutions specializing in technology." In the initial phase, Hub Centers will be established in Switzerland, Hong Kong SAR, and Singapore.
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Keywords: International, Europe, Switzerland, Banking, Digital Currency, Central Banking, Regtech, Fintech, Distributed Ledger Technology, Innovation Hub, BIS
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