Maker

Token

Bank AI

Proxima

Test

<![CDATA[<figure class="image"><img src="https://cimg.co/news/125714/331894/bis-cbdc.jpg" srcset="https://cimg.co/news/125714/331894/responsive-images/bis-cbdc___media_library_original_1200_800.jpg 1200w, https://cimg.co/news/125714/331894/responsive-images/bis-cbdc___media_library_original_900_600.jpg 900w, https://cimg.co/news/125714/331894/responsive-images/bis-cbdc___media_library_original_720_480.jpg 720w, https://cimg.co/news/125714/331894/responsive-images/bis-cbdc___media_library_original_600_400.jpg 600w, https://cimg.co/news/125714/331894/responsive-images/bis-cbdc___media_library_original_300_200.jpg 300w" width="1200" class="content-img" alt=""><figcaption>Source: AdobeStock / Proxima Studio</figcaption></figure>The Bank for International Settlements (BIS) and central banks of France, Singapore, and Switzerland have jointly <a href="https://www.bis.org/about/bisih/topics/cbdc/mariana.htm">announced a successful test of cross-border trading</a> and settlement for wholesale central bank digital currencies (wCBDCs).This test incorporated innovative decentralized finance (<a href="https://cryptonews.com/guides/defi-guides/">DeFi</a>) technology concepts and was executed on a public blockchain.<h2 id="project-mariana-tested-cross-border-trading-using-cbdcs">Project Mariana Tested Cross-Border Trading Using CBDCs</h2>Project Mariana, jointly developed by three <a href="https://cryptonews.com/news/bank-of-international-settlements-report-15-retail-cbdcs-will-launched-by-2030.htm">BIS Innovation Hub</a> centers - Swiss, Singapore, and Eurosystem Hub Centers, in conjunction with the Bank of France, Monetary Authority of Singapore, and <a href="https://cryptonews.com/news/swiss-central-bank-to-launch-real-world-cbdc-pilot.htm">Swiss National Bank</a>, demonstrated the feasibility of cross-border trading and settlement involving hypothetical euro, Singapore dollar, and Swiss franc wCBDCs among simulated financial institutions.The project's success hinged on three key elements:Common Technical Token Standard: A standardized token provided by a public blockchain to facilitate interoperability and exchange between various currencies.Bridges for Seamless Transfer: Mechanisms for frictionless transfer of wCBDCs across different networks.Automated Market Maker (AMM): A specialized decentralized exchange enabling automatic pricing, execution, and immediate settlement of spot FX transactions.The AMM effectively pooled liquidity from the hypothetical euro, Singapore dollar, and Swiss franc wCBDCs, utilizing innovative algorithms to price and execute spot FX transactions automatically.&nbsp;This project aimed to explore next-generation financial market infrastructures designed to streamline cross-border trading and settlement processes among financial institutions.<h2 id="project-leverages-public-blockchain-to-enable-seamless-exchange">Project Leverages Public Blockchain to Enable Seamless Exchange</h2>It leverages a common token standard on a public blockchain, enabling seamless exchange and interoperability across diverse local payment and settlement systems maintained by participating central banks.&nbsp;This approach offers insights into incorporating an international dimension into ongoing wCBDC design explorations.The report noted that while Project Mariana marks a significant step forward, it is essential to recognize that tokenization and DeFi technologies are still in their early stages.&nbsp;Cecilia Skingsley, Head of the BIS Innovation Hub, stated:<blockquote>Project Mariana pioneers the use of novel technology for interbank foreign exchange markets. It successfully demonstrated that it is feasible to exchange wholesale CBDC across borders using novel concepts such as automated market makers.</blockquote>
]]>

BIS and Central Banks of France, Singapore and Switzerland Successfully Test Cross-Border CBDC Using DeFi

Table of Contents

Cryptonews.com

Other articles published on Sep 28, 2023

US Department of Defense Establishes BRAVO AI Battle Labs to Drive Innovation and Efficiency

Ethereum futures ETFs could start trading next week — Bloomberg analyst

Revolutionary Tracking Method Unleashes the Power of AI to Monitor Animal Behavior

Fireblocks integrates Tezos network to enhance crypto custody and settlement

Metrics Ventures Launches $30 Million Data and Fundamental-Driven Digital Asset Secondary Liquid ...

Hypothekarbank Lenzburg Joins SDX: Swiss Bank Expands Digital Asset Presence

Join our free newsletter for daily crypto updates!