- Two of the world’s leading central banks have confirmed some success after testing the creation and set-up of a central bank digital currency (CBDC) in conjunction with the Onyx business unit at JP Morgan.
- The Monetary Authority of Singapore (MAS) and Banque de France said that they could simulate cross-border payments in a number of currencies, meaning a potentially positive future for those looking to make faster online money transfers between nations.
- “It is an opportunity to construct arrangements for multiple CBDCs models, improving cross-border payments and increasing harmonisation of post-trade procedures,” said a spokesperson for Banque de France.
The central banks of Singapore and France have confirmed that a collaboration towards setting up a central bank digital currency has gone well.
The two organisations – the Monetary Authority of Singapore (MAS) and Banque de France – confirmed that the test, supported by the Onyx business unit within the financial services firm JP Morgan, went well.
It managed to simulate cross-border payments using more than one central bank digital currency (CBDC).
Part of the testing saw the use of ‘automated market-making’ for enhanced efficiencies in the payments process.
One aim of the test was to find a way to reduce the time that users needed to spend waiting for their cash to be transferred.
Often, customers have to wait for extended periods of time due to currency settlement problems and different time zones.
In this particular test, cross-border transactions were simulated for two different currencies – the Singapore dollar and the euro.
A permission blockchain was used to enhance the process.
In a statement to the press, Valérie Fasquelle, the director of Infrastructures, Innovation and Payments for Banque de France, said that the outcomes could be factored into models for central banking organisations worldwide.
Fasquelle also said that it would have an impact when it comes to trade.
“By experimenting the circulation of EUR CBDC in a shared corridor network, the MAS and the Banque de France tested the possibility to provide a link with other CBDCs all over the world,” she said.
“It is an opportunity to construct arrangements for multiple CBDCs models, improving cross-border payments and increasing harmonisation of post-trade procedures.”
Sopnendu Mohanty, who is the chief fintech officer of MAS, said that the multi-currency aspect of the model would allow for better international payments.
Mohanty said that the test reflected a process of decentralisation.
“Building a multi-currency shared ledger infrastructure allows participants across countries to transact with each other directly in different currencies,” he said.
“This m-CBDC experiment has broken new ground by decentralising financial infrastructure, to improve liquidity management and market making services.
“It charts the path for scalable CBDC networks where central banks and commercial banks can work together to achieve the vision of cheaper, safer, and more efficient infrastructure for cross-border payments."
To pick up more information about the way that the online money transfer sector works, head over to our reviews page where you can find what you need.
- Two of the world’s leading central banks have confirmed some success after testing the creation and set-up of a central bank digital currency (CBDC) in conjunction with the Onyx business unit at JP Morgan.
- The Monetary Authority of Singapore (MAS) and Banque de France said that they could simulate cross-border payments in a number of currencies, meaning a potentially positive future for those looking to make faster online money transfers between nations.
- “It is an opportunity to construct arrangements for multiple CBDCs models, improving cross-border payments and increasing harmonisation of post-trade procedures,” said a spokesperson for Banque de France.
The central banks of Singapore and France have confirmed that a collaboration towards setting up a central bank digital currency has gone well.
The two organisations – the Monetary Authority of Singapore (MAS) and Banque de France – confirmed that the test, supported by the Onyx business unit within the financial services firm JP Morgan, went well.
It managed to simulate cross-border payments using more than one central bank digital currency (CBDC).
Part of the testing saw the use of ‘automated market-making’ for enhanced efficiencies in the payments process.
One aim of the test was to find a way to reduce the time that users needed to spend waiting for their cash to be transferred.
Often, customers have to wait for extended periods of time due to currency settlement problems and different time zones.
In this particular test, cross-border transactions were simulated for two different currencies – the Singapore dollar and the euro.
A permission blockchain was used to enhance the process.
In a statement to the press, Valérie Fasquelle, the director of Infrastructures, Innovation and Payments for Banque de France, said that the outcomes could be factored into models for central banking organisations worldwide.
Fasquelle also said that it would have an impact when it comes to trade.
“By experimenting the circulation of EUR CBDC in a shared corridor network, the MAS and the Banque de France tested the possibility to provide a link with other CBDCs all over the world,” she said.
“It is an opportunity to construct arrangements for multiple CBDCs models, improving cross-border payments and increasing harmonisation of post-trade procedures.”
Sopnendu Mohanty, who is the chief fintech officer of MAS, said that the multi-currency aspect of the model would allow for better international payments.
Mohanty said that the test reflected a process of decentralisation.
“Building a multi-currency shared ledger infrastructure allows participants across countries to transact with each other directly in different currencies,” he said.
“This m-CBDC experiment has broken new ground by decentralising financial infrastructure, to improve liquidity management and market making services.
“It charts the path for scalable CBDC networks where central banks and commercial banks can work together to achieve the vision of cheaper, safer, and more efficient infrastructure for cross-border payments."
To pick up more information about the way that the online money transfer sector works, head over to our reviews page where you can find what you need.
