BIS Issues Updates on Technology Initiatives on Cross-Border Payments
BIS recently made a couple of announcements with respect to the planned and ongoing work in the area of financial technology. The BIS Innovation Hub and SWIFT launched a hackathon, inviting teams to build and showcase solutions that enhance cross-border payments. Three winning teams will showcase their solutions at the BIS Innovation Summit in March to a global audience, including key payments industry players and central bankers. Additionally, the BIS Innovation Hub announced that the central banks of China and United Arab Emirates joined the digital currency project for cross-border payments, also known as the Multiple CBDC (m-CBDC) Bridge.
The m-CBDC bridge initiative is run in partnership with the BIS Innovation Hub, HKMA and BOT. The aim of the project, which was initiated by HKMA and the BOT under the name Inthanon-LionRock and later renamed, is to propose solutions and concepts to alleviate the current pain points in making cross-border fund transfers; these include inefficiencies, high cost, and complex regulatory compliance. The initiative will further explore the capabilities of distributed ledger technology by developing a proof-of-concept (PoC) prototype to support real-time, cross-border foreign exchange payment-versus-payment transactions in multiple jurisdictions, operating 24/7. It will analyze business use cases in a cross-border context with both domestic and foreign currencies. The participating central banks will take into account the results of the PoC work to evaluate the feasibility of the m-CBDC bridge project for cross-border fund transfers, international trade settlement, and capital market transactions in their own jurisdictions. Following the joining of CBUAE and the Digital Currency Institute of PBC, the m-CBDC bridge project will further foster a conducive environment for more central banks in Asia as well as other regions to jointly study the potential of distributed ledger technology in enhancing the financial infrastructure for cross-border payments.
Related Links
- BIS Press Release on Hackathon
- BIS Press Release on m-CBDC Project
- CBUAE Press Release on m-CBDC Project (in Arabic)
- BOT Press Release (in Thai)
Keywords: International, Asia Pacific, Middle East and Africa, China, Thailand, Hong Kong, UAE, Banking, m-CBDC, Digital Currency, Proof of Concept, Distributed Ledger Technology, CBDC, CBUAE, HKMA, BOT, BIS
Previous Article
BaFin Sets Out Minimum Requirements for Resolution AssessmentsRelated Articles
BIS and Central Banks Experiment with GenAI to Assess Climate Risks
A recent report from the Bank for International Settlements (BIS) Innovation Hub details Project Gaia, a collaboration between the BIS Innovation Hub Eurosystem Center and certain central banks in Europe
Nearly 25% G-SIBs Commit to Adopting TNFD Nature-Related Disclosures
Nature-related risks are increasing in severity and frequency, affecting businesses, capital providers, financial systems, and economies.
Singapore to Mandate Climate Disclosures from FY2025
Singapore recently took a significant step toward turning climate ambition into action, with the introduction of mandatory climate-related disclosures for listed and large non-listed companies
SEC Finalizes Climate-Related Disclosures Rule
The U.S. Securities and Exchange Commission (SEC) has finalized the long-awaited rule that mandates climate-related disclosures for domestic and foreign publicly listed companies in the U.S.
EBA Proposes Standards Related to Standardized Credit Risk Approach
The European Banking Authority (EBA) has been taking significant steps toward implementing the Basel III framework and strengthening the regulatory framework for credit institutions in the EU
US Regulators Release Stress Test Scenarios for Banks
The U.S. regulators recently released baseline and severely adverse scenarios, along with other details, for stress testing the banks in 2024. The relevant U.S. banking regulators are the Federal Reserve Bank (FED), the Federal Deposit Insurance Corporation (FDIC), and the Office of the Comptroller of the Currency (OCC).
Asian Governments Aim for Interoperability in AI Governance Frameworks
The regulatory landscape for artificial intelligence (AI), including the generative kind, is evolving rapidly, with governments and regulators aiming to address the challenges and opportunities presented by this transformative technology.
EBA Proposes Operational Risk Standards Under Final Basel III Package
The European Union (EU) has been working on the final elements of Basel III standards, with endorsement of the Banking Package and the publication of the European Banking Authority (EBA) roadmap on Basel III implementation in December 2023.
EFRAG Proposes XBRL Taxonomy and Standard for Listed SMEs Under ESRS
The European Financial Reporting Advisory Group (EFRAG), which plays a crucial role in shaping corporate reporting standards in European Union (EU), is seeking comments, until May 21, 2024, on the Exposure Draft ESRS for listed SMEs.
ECB to Expand Climate Change Work in 2024-2025
Banking regulators worldwide are increasingly focusing on addressing, monitoring, and supervising the institutions' exposure to climate and environmental risks.
