The Bank for International Settlements Innovation Center, Reserve Bank of Australia, Bank Negara Malaysia, Monetary Authority of Singapore and Reserve Bank of South Africa join forces to test the use of Central bank digital currencies (CBDC) for international settlements.
Led by the Singapore Innovation Hub, the Dunbar project aims to develop prototypes of shared platforms for cross-border transactions using multiple CBDCs. These multi-CBDC platforms will allow financial institutions to transact directly with each other in digital currencies issued by participating central banks, thereby eliminating the need for intermediaries and reducing the time and cost of transactions.
The project will work with several partners to develop technical prototypes on different distributed ledger technology platforms. It will also explore different conceptions of governance and operation that would allow central banks to share CBDC infrastructure, benefiting from collaboration between public and private sector experts in different jurisdictions and areas of operation.
The work of the Dunbar project will explore the international dimension of CBDC design and support the G20 roadmap efforts to improve cross-border payments. Its results, which are expected to be released in early 2022, will inform the development of future platforms for global and regional institutions. Technical prototypes of the shared platforms, developed in collaboration with various technological partners, will be presented at the Singapore FinTech Festival in November 2021.
“The Dunbar Project brings together central banks with years of experience and unique perspectives in CBDC projects and ecosystem partners at advanced stages of technical development on digital currencies. With this group of knowledgeable and passionate partners, we are confident that our work on multi-CBDCs for international settlements will open new avenues in this next stage of the CBDC experimentation and lay the foundation for global payments connectivity, ”he said. said Andrew McCormack, head of the BIS Innovation Hub Singapore Center.
“We are delighted to collaborate with the BIS Innovation Hub and central bank partners on this important initiative to explore how a shared platform for multiple CBDCs could be used to improve the speed, cost and transparency of cross-border transactions. wholesale. Improving cross-border payments has become a priority for the international regulatory community and something we are very much focused on in our domestic policy work, ”said Michele Bullock, Deputy Governor (Financial System), Reserve Bank of Australia.