DeFi technology has the potential to revolutionize financial services.
The centralized financial institution says the automated market making technology in DeFi can serve as a 'basis for a new generation of financial infrastructure." In other words, the technology has the potential to revolutionize the way we think a[...]
This is an exciting development for the world of finance, as blockchain technology has the potential to revolutionize the way that foreign exchange markets and settlements are conducted. With Project Mariana, the BIS and its partner central banks are exploring how DeFi protocols can be used to automate these processes. This could lead to more efficient and secure markets, with faster settlements and lower costs. It will be interesting to see how this project develops and what other applications of blockchain technology are discovered.
Project Mariana explores using automated market makers for the cross-border exchange of hypothetical CHF, EUR and S$ wholesale CBDCs. It's a #BISInnovationHub joint venture with the French, Swiss & Singapore #CentralBanks@banquedefrance @MAS_sg @SNB_BNS https://t.co/GsNLpXZlsD pic.twitter.com/2tMitZcNF2— Bank for International Settlements (@BIS_org) November 2, 2022
This is an exciting development that has the potential to revolutionize cross-border transactions. The combination of smart contracts and automated market maker protocols has the potential to create a more efficient and cost-effective system for exchanging CBDCs. This could potentially lead to the development of a new basis for exchanges for CBDCs, which would be a major breakthrough in the world of finance.
BIS believes that automated market makers have the potential to revolutionize the financial industry, providing a new generation of infrastructure that is more efficient and resilient. Cecilia Skingsley, head of innovation at BIS, believes that this could lead to a more stable and inclusive financial system.
"This pioneering project pushes our CBDC research into innovative frontiers, incorporating some of the promising ideas of the DeFi ecosystem. Mariana also marks the first collaboration across Innovation Hub Centres; expect to see more in the future."
According to the Bank for International Settlements (BIS), central banks around the world are exploring the possibility of issuing their own digital currencies (CBDCs). BIS and collaborating central banks have set a tentative date of mid-2023 for delivering a proof of concept. The financial institution was previously skeptical of digital assets due to their inherent price variance and lack of a unified regulatory framework. Nevertheless, BIS has praised elements of distributed ledger networks, such as their technological prowess relative to fiat money. According to a recent report authored by BIS, 90% of central banks worldwide are currently researching the utility of CBDCs.