Central banks of France, Switzerland and BIS complete cross-border CBDC trials – Financial Bitcoin News
The Bank of France, the Swiss National Bank (SNB) and the Bank for International Settlements have successfully tested the application of wholesale central bank digital currencies in cross-border payments. The project uses distributed ledger technology and is implemented with the help of private companies.
France and Switzerland explore direct transfer of euro and Swiss franc wholesale digital currencies
An experiment conducted by the Monetary Authority of France, Switzerland and the Bank for International Settlements (BIS) showed that the central bank’s digital currency (CBDC) Can be effectively used for international settlements between financial institutions, the trial participants announced.
Jura Mountain ProjectThe bank explained that the project was recently completed, focusing on the wholesale CBDC settlement of foreign exchange transactions in euros and Swiss francs, as well as the issuance, transfer and redemption of euro-denominated tokenized French commercial paper between French and Swiss financial institutions.
The experiment involves the direct transfer of Euro and Swiss franc wholesale CBDC between French and Swiss commercial banks on a single distributed ledger platform operated by a third party, and real-value transactions. It is carried out in cooperation with private companies such as Accenture, Credit Suisse, Natixis, R3, SIX Digital Exchange and UBS.
According to partners, issuing wholesale CBDCs by providing regulated non-resident financial institutions with direct access to central bank funds will raise certain policy issues. In order to solve these problems, they adopted a new method, that is, the use of sub-networks and dual notary signatures, which is expected to give the central bank the confidence to issue wholesale CBDCs on third-party platforms. Benoît Cœuré, Head of the Bank for International Settlements (BIS) Innovation Center, Commented:
The Jura project confirms that a well-designed wholesale CBDC can play a key role as a safe and neutral settlement asset for international financial transactions. It also shows how the central bank and the private sector can collaborate across borders to promote innovation.
“Jura showed how wholesale CBDC can optimize cross-currency and cross-border settlement, which is a key aspect of international transactions,” added Sylvie Goulard, Deputy Governor of Bank of France.
The wholesale CBDC experiment is part of a series of experiments launched by the Bank of France last year and is a continuation of the tests conducted under the Swiss National Bank. Helvetia Project. It also contributes to ongoing cross-border payment work G20, The central bank said, while also pointing out that it should not be seen as a plan to issue wholesale CBDC.
Do you think the Bank of France and the Swiss National Bank will eventually issue wholesale CBDC? Please let us know in the comments section below.
Image Source: Shutterstock, Pixabay, Wikimedia Commons
Disclaimer: This article is for reference only. It is not a direct offer or invitation to buy or sell, nor is it a recommendation or endorsement of any product, service or company. Bitcoin Network Does not provide investment, tax, legal or accounting advice. The company or the author is not directly or indirectly responsible for any damage or loss caused or claimed to be caused by using or relying on any content, goods or services mentioned in this article.