Menu
  • Latest
  • Prices
  • NFT
  • Coins
    • Bitcoin
    • Ethereum
    • Cardano
    • Ripple
    • Solana
    • Shiba inu
    • Dogecoin
    • Algorand
    • Litecoin
  • GEO
    • Ukraine
    • China
    • India
    • South Korea
    • North Korea
    • El Salvador
    • Switzerland
    • Nigeria
    • Russia
    • Latin America
  • Wiki
Language:

Coin Prologue
  • Latest
  • Prices
  • NFT
  • Coins
    • Bitcoin
    • Ethereum
    • Cardano
    • Ripple
    • Solana
    • Shiba inu
    • Dogecoin
    • Algorand
    • Litecoin
  • GEO
    • Ukraine
    • China
    • India
    • South Korea
    • North Korea
    • El Salvador
    • Switzerland
    • Nigeria
    • Russia
    • Latin America
  • Wiki
  • News

Multiple CBDC Platform May Cut Int Payment Costs By Up To Half – BIS

  • Ralph Smith
  • 28/09/2021
  • 3 views
  • 2 minute read
Total
0
Shares
0
0
0
0
0
0

Source: Adobe / krichie

The Innovation Center of the Bank for International Settlements (BIS) and four central banks have jointly developed a prototype of several central bank digital currencies (mCBDCs). According to the hub, it shows the potential of using digital currencies and distributed ledger technology (DLT) to ensure “real-time, cheaper and safer cross-border payments and settlements.”

The mBridge project is a collaboration between the BIS and four Asian central banks: the Hong Kong Monetary Authority, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China and the Central Bank of the United Arab Emirates.

“The prototype is part of our efforts to develop CBDC technology. The project involves experimenting with use cases and studies that are balanced with the analysis of governance, political and legal considerations with an emphasis on cross-border use,” said Benoît Cœuré, head of the BIS Innovation Hub.

The prototype platform for mCBDC settlements managed to complete international transfers and foreign exchange transactions in seconds. This is in contrast to several days, which are usually required to conclude a transaction through the existing network, which relies on commercial banks.

In addition”CBDCs can operate around the clock, which avoids mismatch in operating hours,” they said.

A report published by the project participants states that the cost of such operations to users can also be reduced by up to 50%.

However, the study also notes some limitations that could hinder the further implementation of the DLT in cross-border payments.

“In particular, trust in privacy groups to maintain privacy in multiple jurisdictions does not allow for fully automated transactions [payment against payment],” the report says.

Also “since there is no single entity or jurisdiction that can see the balance of all outstanding [foreign exchange] transactions; an optimal liquidity saving mechanism has yet to be found,” they said.

In addition, the scalability and performance of DLT when performing large volumes of transactions must be further evaluated if additional jurisdictions or currencies are to be added to the platform. The study also states that in-depth risk management procedures must be introduced.

Despite these limitations in the global adoption of the technology, project participants say they will “continue to advance the capabilities of DLT and CBDC in areas where results are not yet sufficiently advanced to meet real-world critical infrastructure requirements.”This will involve trials with market participants to” further iterate and improve the prototype and its functionalities.”

Meanwhile, a BIS survey in 2021 revealed, that 86% of central banks surveyed actively explored the potential of CBDCs.

Based in Basel, Switzerland, which UNTIL says it is jointly owned by the world’s 62 central banks, representing countries that together represent around 95% of global gross domestic product (GDP).

Country: Switzerland / China
Ralph Smith

Cryptocurrency geek. Met with Bitcoin and altcoins back in 2011, when the price of BTC was about 10$. Writing articles since 2014 to these days.

You May Also Like
View Post
  • 1
  • 2 min

Report: Korean Central Bank to Gain Right to Probe Virtual Asset Entities After Financial Regulator Drops Opposition

View Post
  • 3
  • 2 min

Financial Analyst Charles Nenner Warns About the End of the US Dollar and Its Consequences

View Post
  • 2 min

Global Reserves Held in US Dollars Fell to Less Than 50% — Official States It Has Become a ‘Toxic’ Currency

View Post
  • 2 min

White House Economist Warns China Wants to Weaken US Dollar’s Reserve Currency Status — Senator Says Biggest Threat Comes From Within

View Post
  • 2 min

Putin and Saudi Crown Prince Discuss Potential BRICS-Saudi Arabia Collaboration

View Post
  • 2 min

Wallet Bot on Telegram Adds Bitcoin Support to Web Interface Following Tether Integration 

Recent Posts
  • Report: Korean Central Bank to Gain Right to Probe Virtual Asset Entities After Financial Regulator Drops Opposition

    View Post
  • Financial Analyst Charles Nenner Warns About the End of the US Dollar and Its Consequences

    View Post
  • Global Reserves Held in US Dollars Fell to Less Than 50% — Official States It Has Become a ‘Toxic’ Currency

    View Post
  • White House Economist Warns China Wants to Weaken US Dollar’s Reserve Currency Status — Senator Says Biggest Threat Comes From Within

    View Post
Coin Prologue Coin Prologue
Made with ❤️Love in 🇺🇦Ukraine ©2021 — 2022

Input your search keywords and press Enter.