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.
Keywords: International, Europe, Switzerland, Banking, Digital Currency, Central Banking, Regtech, Fintech, Distributed Ledger Technology, Innovation Hub, BIS
Previous ArticleEIOPA Launches Field Test on Templates Under 2020 Solvency II Review
The European Commission (EC) announced plans to defer the application of 13 regulatory technical standards under the Sustainable Finance Disclosure Regulation (2019/2088) by six months, from January 01, 2022 to July 01, 2022.
The Bank of England (BoE) published a consultation paper on approach to setting minimum requirement for own funds and eligible liabilities (MREL), an operational guide on executing bail-in, and a statement from the Deputy Governor Dave Ramsden.
The European Banking Authority (EBA) is seeking preliminary input on standardization of the proportionality assessment methodology for credit institutions and investment firms.
Certain regulatory authorities in the US are extending period for completion of the review of certain residential mortgage provisions and for publication of notice disclosing the determination of this review until December 20, 2021.
The Prudential Regulation Authority (PRA) published the policy statement PS18/21, which introduces an amendment in the definition of "higher paid material risk taker" in the Remuneration Part of the PRA Rulebook.
The European Banking Authority (EBA) published its annual report on asset encumbrance in banking sector.
The European Banking Authority (EBA) published a methodological guide to mystery shopping.
The Australian Prudential Regulation Authority (APRA) released a letter to authorized deposit-taking institutions to provide an update on key policy settings for the capital framework reforms, which will come into effect from January 01, 2023.
The Committee on Payments and Market Infrastructures (CPMI) and the International Organization of Securities Commissions (IOSCO) published a report that assesses the business continuity planning activities of financial market infrastructures or FMIs.
The European Securities and Markets Authority (ESMA) has responded to the IFRS consultation on targeted amendments to the IFRS Foundation constitution to accommodate an International Sustainability Standards Board (ISSB) to set IFRS Sustainability Standards.