© Reuters
Investing.com – Several central banks and the Bank for International Settlements are working on prototypes for a common digital currency platform that could make cross-border payments more efficient.
The two prototypes demonstrate the technical viability of such a platform, the BIS said. Codenamed “Project Dunbar”, this development also proves that financial institutions could use central bank digital currencies to transact directly with each other on a common platform, reducing the need for intermediaries and lowering costs and the weather.
“A common platform is the most efficient model for payments connectivity, but it’s also the hardest to achieve,” said Andrew McCormack, head of BRI’s Innovation Hub Center in Singapore.
Central Banks Adapt to the Emergence of Cryptos
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“While it is clear that there is still work to be done to think about the feasibility and design of multi-CBDC platforms, the findings of the Dunbar project provide a good platform for future work,” said Michele Bullock, Governor. deputy of the RBA.
Next steps include developing detailed platform regulations, reviewing legal and regulatory frameworks, forming governance committees and then technical development and full-scale testing.
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