The BIS Innovation Hub Swiss Centre, SNB, and the financial infrastructure operator SIX announced the successful completion of a joint proof-of-concept (PoC) experiment as part of the Project Helvetia. The proof-of-concept involved integration of tokenized digital assets and central bank money. This initiative has demonstrated the functional feasibility and legal robustness of settling tokenized assets with a wholesale central bank digital currency, or CBDC, (PoC1) and with linking a distributed ledger technology platform to the existing payment systems (PoC2) in a near-live setup.
Project Helvetia explored the technological and legal feasibility of transferring digital assets through issuing a wholesale CBDC onto a distributed digital asset platform and linking the digital asset platform to the existing wholesale payment system. However, comparing the two proof-of-concepts reveals benefits and challenges. A wholesale CBDC has potential advantages when settling digital assets, yet it would raise major policy and governance hurdles. Linking existing systems to new distributed ledger technology platforms would avoid many of these problems, but would forgo the potential benefits of full integration. The next steps will be to gain a better understanding of the practical complexities and policy implications of wholesale CBDC. Different design choices that allow for trade-offs between risks and benefits need to be explored. Project Helvetia will proceed in two complementary directions: to deepen the project by addressing further functional, operational, and policy questions on the issuance of wholesale CBDC and to broaden future involvement in the project to explore the functioning of a wholesale CBDC across borders and with a diverse set of participants. Project Helvetia was the first wholesale CBDC experiment by SNB and complements the planned launch of SIX Digital Exchange. It is an example of how open collaboration can improve the common understanding of the impact of digital innovation on the future of the financial system.
Keywords: International, Europe, Switzerland, Banking, Project Helvetia, CBDC, Cross-Border Payments, Blockchain, Digital Currencies, BIS Innovation Hub, SNB, BIS
APRA announced the standardization of quarterly reporting due dates for authorized deposit-taking institutions.
EBA published the phase 1 of its reporting framework 3.1, with the technical package covering the new reporting requirements for investment firms (under the implementing technical standards on investment firms reporting).
HM Treasury notified that, after considering all responses, the government intends to bring forward further legislation, when the Parliamentary time allows, to address issues identified in the consultation on supporting the wind-down of critical benchmarks.
EIOPA launched the 2021 stress test for the insurance sector in EU.
UK authorities jointly published the third edition of Regulatory Initiatives Grid setting out the planned regulatory initiatives for the next 24 months.
EC is requesting feedback on the proposed Commission Delegated Regulation on the content, methodology, and presentation of information that large financial and non-financial undertakings should disclose about their environmentally sustainable economic activities under the Taxonomy Regulation.
OSFI has set out the near-term priorities for federally regulated financial institutions and federally regulated private pension plans for the coming months until March 31, 2022.
Under the Italian G20 Presidency, BIS Innovation Hub and the Italian central bank BDI launched the second edition of the G20 TechSprint on the lookout for innovative solutions to resolve operational problems in green and sustainable finance.
ACPR published Version 1.0.0 of the RUBA taxonomy, which will come into force from the decree of January 31, 2022.
EBA proposed the regulatory technical standards on a central database on anti-money laundering and countering the financing of terrorism (AML/CFT) in EU.