The Bank for International Settlements (BIS) reported on the successful completion of an experiment on the joint work of the central banks of four countries.
The BIS Innovation Center has completed a pilot project of the Central Bank Digital Currency Experimental Platform (CBDC) for international settlements. The central banks of Singapore, Australia, Malaysia and South Africa participated in the project.
The platform, called Project Dunbar, aims to facilitate direct cross-border transactions between financial institutions using several digital currencies issued by central banks in different countries.
According to the report, the project proved to be a success, proving that financial institutions can use their own digital currency for direct transactions with each other on a common platform. One of the key problems that the project tried to solve was how to make cross-border money transfers while still complying with the regulatory requirements of different countries. To do this, four banks have created a common payment infrastructure.
According to BIS experts, during the experiment, the researchers did not encounter critical problems. Instead, they figured out that it was technically possible to implement what they called “multi-CBDC”. The developers of Project Dunbar said they were able to demonstrate how different financial structures, with reliable technological tools, can solve important problems related to security and joint control.
Recall that earlier the head of the BIS, Agustin Carstens, said that only central banks can ensure the reliability of the monetary system.
