Cross-Border CBDC Settlements Successfully Tested: Singapore, Switzerland, and France's Collaborative Effort
Date: 2023-09-28 Author: Dima Zakharov Categories: BUSINESS, IN WORLD
Successful Cross-Border Settlements in CBDCs: Joint Testing Experience of Singapore, Switzerland, and France
The central banks of Singapore, Switzerland, and France, in collaboration with the Bank for International Settlements (BIS), have successfully tested cross-border wholesale settlements in central bank digital currencies (CBDCs). This significant advancement in the development of digital financial technologies was carried out as part of a project called "Mariana." Project participants, simulating financial institutions, conducted wholesale settlements in CBDCs using decentralized finance (DeFi) technology. The experiment involved the use of the euro, Singapore dollar, and Swiss franc.
One of the important aspects of the "Mariana" project is the application of innovative approaches, such as automated market makers (AMM). These novel methods provide insights into the potential of wholesale trading within CBDCs and contribute to the development of new solutions in the financial sector.
CBDC Prospects: Experimental Steps and the Future of Central Banks
The experimental "Mariana" project has been a significant step in exploring the prospects of central bank digital currencies (CBDCs). It not only demonstrated the success of cross-border settlements but also underscored the importance of further research and experimentation in this field.
Data analysis from the Bank for International Settlements reveals that currently, 93% of the world's central banks are exploring the possibilities of implementing digital national currencies. It is anticipated that by 2030, up to 15 retail and nine wholesale CBDCs may be in circulation. Many central banks are already engaged in pilot projects or experimenting with the creation of their CBDCs.
It is worth noting the interest in this technology from private companies, such as Mastercard, which is working on a digital national currency program. This interest indicates that the development of CBDCs may have significant potential for improving economic processes.
Overall, the experimental steps taken by Singapore, Switzerland, and France in researching and testing cross-border settlements in CBDCs open up new prospects for the digital financial world. Nevertheless, it is important to continue in-depth research and pilot projects to fully harness the potential of this innovative technology.
