Tuesday’s announcement by the Bank for International Settlements (BIS), that a pilot multi-jurisdiction CBDC pilot led by BIS Innovation hub was successful, was made on Tuesday. Through a multi-CBDC platform mBridge, 164 transactions totaling nearly $22,000,000 in cross-border real-value payments were completed.
The project was completed by 20 commercial banks, in addition to the central banks of Hong Kong and China, Thailand, Thailand, the United Arab Emirates (UAE) and lasted just over a month.
Multi-CBDC Cross Border Payments
The four central banks that participated in the test platform issued more than $12 million worth of digital assets (CBDC), according to a Linkedin post.
It took place on the mBridge Ledger (a #DLT platform custom-developed) from 15 August through 23 September. The platform was used by the 20 participating commercial banks to settle various types of payments for corporate clients, with a focus on cross-border trading. The platform was able to facilitate over 160 cross-border payments, and FX transactions worth more than $22,000,000,” the post stated.
BIS promised to publish a detailed report on technical design, policy and legal aspects of the mBridge project in Hong Kong Fintech (31 Oct – 4 Nov 2022). A roadmap will be provided by the Switzerland-based central bank.
Tayo Tunyathon from Bank of Thailand was part of this project and called it the first pilot to use real value CBDC in cross-border trade settlements. She wrote in a Linkedin post that she was proud to be a part the historic milestone’s working team. CBDC is a great tool for bridging the gap and facilitating economic growth. We are just beginning to grasp its potential.
90% Central Banks Explore CBDC Options
BIS conducted a survey in May 2022 and found that 73 of 81 central bankers are looking into ways to launch CBDCs. Half of these banks are also developing or testing them. Central banks also believe CBDCs will alleviate some of the key pain points, such as long payment procedures and limited operating hours.
Cecilia Skingsley (the Swedish central banker) stated that CBDCs were the natural evolution and end of the fiat monetary systems in June. She was to assume the role of chief of BIS Innovation Hub in September.
She said that she sees it as an evolution in the central bank’s role rather than a revolution. “I think cash will disappear from the payment method of choice, that’s for certain,” she stated at the ECB event in Sintra, Portugal.
CryptoPotato’s first post was entitled “BIS Proclaims Success in Multi CBDC Cross-Border Payment Pilot Project”
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