BIS and Central Banks to Test CBDC Use for International Settlements
The Innovation Hub of the Bank for International Settlements (BIS), the Reserve Bank of Australia (RBA), the Bank Negara Malaysia (BNM), the Monetary Authority of Singapore (MAS), and the South African Reserve Bank (SARB) will jointly test the use of central bank digital currencies (CBDCs) for international settlements. This project, known as the Project Dunbar, will develop prototypes for shared platforms that will enable international settlements with digital currencies issued by multiple central banks. The results of this project, which are expected to be published in early 2022, will inform the development of future platforms for global and regional settlements and support G20 roadmap for improving cross-border payments.
Led by the Singapore Center of the BIS Innovation Hub, Project Dunbar aims to develop prototype shared platforms for cross-border transactions using multiple CBDCs. These multi-CBDC platforms will allow financial institutions to transact directly with each other in the digital currencies issued by the participating central banks, eliminating the need for intermediaries and reducing the time and cost of transactions. The project will work with multiple partners to develop technical prototypes on different distributed ledger technology platforms. It will also explore different governance and operating designs that would enable central banks to share CBDC infrastructure, benefitting from the collaboration between public- and private-sector experts in different jurisdictions and areas of operation. The work of Project Dunbar will explore the international dimension of CBDC design and support efforts of the G20 roadmap for enhancing cross-border payments. Technical prototypes of the shared platforms, developed in collaboration with different technology partners, will be demonstrated at the Singapore FinTech Festival in November 2021.
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Keywords: International, Asia Pacific, Australia, Singapore, Malaysia, South Africa, Banking, CBDC, Digital Currencies, G20, Distributed Ledger Technology, DLT, BIS Innovation Hub, Project Dunbar, BIS, MAS
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