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
EU published Directive 2021/338, which amends the Markets in Financial Instruments Directive (MiFID) II and the Capital Requirements Directives (CRD 4 and 5) to facilitate recovery from the COVID-19 crisis.
The Standing Committee of the European Free Trade Association (EFTA) recommended that a systemic risk buffer level of 4.5% for domestic exposures can be considered appropriate for addressing the identified systemic risks to the stability of the financial system in Norway.
In a recent statement, PRA clarified its approach to the application of certain EU regulatory technical standards and EBA guidelines on standardized and internal ratings-based approaches to credit risk, following the end of the Brexit transition.
In a recently published letter addressed to the G20 finance ministers and central bank governors, the FSB Chair Randal K. Quarles has set out the key FSB priorities for 2021.
EU published, in the Official Journal of the European Union, a corrigendum to the revised Capital Requirements Regulation (CRR2 or Regulation 2019/876).
ESAs published a joint supervisory statement on the effective and consistent application and on national supervision of the regulation on sustainability-related disclosures in the financial services sector (SFDR).
EC published a public consultation on the review of crisis management and deposit insurance frameworks in EU.
HKMA announced that enhancements will be made to the Special 100% Loan Guarantee of the SME Financing Guarantee Scheme (SFGS) and the application period will be extended to December 31, 2021.
EBA launched consultations on the regulatory and implementing technical standards on cooperation and information exchange between competent authorities involved in prudential supervision of investment firms.
BoE issued a letter to the CEOs of eight major UK banks that are in scope of the first Resolvability Assessment Framework (RAF) reporting and disclosure cycle.