Four central banks: the Reserve Bank of Australia, the Monetary Authority of Singapore, Bank Negara Malaysia, and the South African Reserve Bank will conduct cross border payment testing using several central bank digital currencies (CBDCs).
The testing is part of Project Dunbar's latest effort by the Bank for International Settlement (BIS) to create a prototype of shared platforms, enabling international settlements.
Explained in an official statement today: “This multi-CBDC platform will allow financial institutions to conduct transactions directly with each other in the form of digital currency issued by the central banks involved, thus eliminating the need for intermediaries and reducing transaction time and cost. . ”
The project spearheaded by BIS Innovation Hub Singapore plans to work with several partners to develop technical prototypes on different distributed ledger technology platforms.
They will also explore various administrative and operational designs that enable central banks to share CBDC infrastructure, while supporting the G20 roadmap in enhancing cross -border payment capabilities.
A technical prototype of the joint platform is expected to be unveiled at the Singapore FinTech Festival this November.
Apart from these four countries, another different project involving the use of CBDC in cross -border payments is under study involving China, Hong Kong, Thailand, and the United Arab Emirates (UAE).
