Several central banks join forces in mBridge project.
Several central banks participated in the mBridge project, a multi-CBDC platform for international payments, as part of an experiment.
The Bank for International Settlements (BIS) announced on Tuesday that a multi-jurisdiction CBDC pilot it had spearheaded had been successful. The project saw 164 transactions worth nearly $22 million in real-value cross-border payments through a purpose-built multi-CBDC platform called mBridge. This is a great development for the adoption of CBDCs, as it shows that they can be used for real-world cross-border payments. This could potentially lead to more widespread use of CBDCs, as more countries and businesses see their benefits.
The commercial banks that participated in the project spanned a wide range of countries, including Hong Kong, China, Thailand, and the United Arab Emirates (UAE). The project lasted for just over a month, and it was a success in terms of getting a large number of commercial banks on board. This is a positive development for the global banking industry, as it shows that commercial banks are willing to work together on innovative projects.
Cross-Border Payments Made Easy with Multi-CBDC
Over $12 million worth of official digital assets (CBDC) was issued by the four participating central banks to the test platform, BIS said in a Linkedin post. This is a major development in the world of central bank-issued digital currencies, and it could have major implications for the global economy. The four central banks involved in the test are the Bank of Canada, the Bank of England, the Bank of Japan, and the Swiss National Bank. The test platform was developed by the BIS, and it is designed to allow central banks to experiment with issuing digital currencies.
“It took place from 15 August to 23 September on the mBridge Ledger, a custom-developed #DLT platform. The 20 participating commercial banks used the platform to settle different kinds of payments for corporate customers, focusing on cross-border trade. Over $12 million in value was issued onto the platform facilitating over 160 cross-border payments and FX transactions totaling more than $22 million in value,” the post said.
The BIS has promised to release a detailed report on the mBridge project during Hong Kong Fintech. The report will cover aspects such as technical design, legal policy, and other regulatory aspects. The Switzerland-based bank of central banks will also reveal a roadmap for the new development.
I am proud to have been a part of the team that made this historic milestone possible. CBDC has the potential to bridge borders and facilitate trade and economic growth on a global scale, and we have only just begun to explore its possibilities.
Central banks around the world are exploring the possibility of issuing their own digital currencies.
In May 2022, a BIS survey revealed that 73 out of 81 central banks are exploring ways to launch CBDCs, and 50% of them are already developing or experimenting with them. The paper further pointed out that central banks believe CBDCs can alleviate key pain points such as limited operating hours and lengthy procedures for payments. This is good news for those who have been advocating for the use of CBDCs. Central banks are recognising the benefits of CBDCs and are taking steps to implement them. This will help to improve the efficiency of payments and make it easier for people to access banking services.
I agree with Cecilia Skingsley that CBDCs are the natural evolution of the fiat monetary system. Cash is becoming increasingly irrelevant in today's digital world, and CBDCs offer a more efficient and convenient way to conduct transactions. I believe that CBDCs will eventually replace cash altogether, and I believe that the BIS Innovation Hub will play a pivotal role in making this happen.
“I see it as an evolution of the central bank role, rather than a revolution… I think cash will disappear as a payment method, that’s for sure,” she said at the ECB event at Sintra, Portugal.
The post BIS Proclaims Success in Multi-CBDC Cross-Border Payment Pilot Project appeared first on CryptoPotato. This is a positive development for the use of CBDCs in cross-border payments, as it shows that the technology can be used effectively to facilitate such payments.
