“Successful” with $22 million in transactions

“Successful” with $22 million in transactions

The Bank for International Settlements (BIS) says its multi-country central bank digital currency (CBDC) pilot project has been “successful” after a month-long trial that saw cross-border transactions with a real value of $22 million ” been.

The central banks of Hong Kong, Thailand, China and the United Arab Emirates participated in the pilot program along with 20 commercial banks from these regions.

Over $12 million was spent on the test platform. This enabled 164 foreign exchange transactions and cross-border payments between the participating firms totaling more than $22 million, according to a BIS LinkedIn post on Tuesday.

Graphic from the BIS on the CBDC pilot project. Source: LinkedIn

Daniel Eidan, adviser and solution architect at the BIS, said the pilot will focus on wholesale CBDC cross-border payments and the role of central banks on the platform. He added: “In future phases we will probably consider further commercial aspects.”

The platform, called mBridge, short for Multiple CBDC (mCBDC) Bridge, is part of the Inthanon-LionRock project. This is a cross-border CBDC payment project using distributed ledger technology (DLT) and launched in September 2019 with the participation of the central banks of Thailand and Hong Kong.

Now that the first pilot phase of the platform has been completed, the project is entering the third and final phase. If this is also successful, a minimal version of the product is launched that only includes the core functions of the platform.

A fully operational CBDC cross-border payments platform will only be finalized after revisions and taking into account the feedback from the minimal version, according to a September 2021 BIS report.

In this context: Russia wants to use digital rubles for foreign trade with China

The BIS added that a detailed mBridge progress report will be published in October, discussing the technical design, legal, policy and regulatory considerations and a future development plan for mBridge.

A June BIS report shows that around 90 percent of central banks are considering adopting CBDCs. So far, 11 CBDCs have been released, 15 are in the pilot stage and 26 are in development, according to data from think tank Atlantic Council’s CBDC tracker.

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