- A cutting-edge central bank digital currency (CBDC) test carried out by several major central banks has been deemed a success, according to reports.
- The Hong Kong Monetary Authority was involved, as was the Bank of Thailand and a number of other major Asian banks.
- The project “will benefit those making and receiving payments in different currencies and jurisdictions as well as the overall functioning of the global financial system,” said a senior figure at the BIS Innovation Hub, which oversaw the test.
A cutting-edge international money transfer test carried out by several major Asian central banks has been deemed a success, according to reports.
Four countries were involved in a central bank digital currency (CBDC) test, including the Hong Kong Monetary Authority, the Bank of Thailand, the Digital Currency Institute of the People’s Bank of China and the Central Bank of the United Arab Emirates
The Bank of International Settlements (BIS), whose BIS Innovation Hub had overseen the experiment, said that it had discovered through the tests that setting up payments bridges between nations was possible.
Results showed that there were just over 160 transactions carried out. A total of 20 banks joined in the efforts, which lasted around six weeks.
It is believed that over $12m was sent between the nations as part of a test.
In a statement, a senior figure at the BIS said that the project was taking steps towards improving inclusivity.
Cecilia Skingsley, Head of the BIS Innovation Hub, said that the “project makes important strides towards developing a platform that has the potential to foster more inclusive and efficient payments systems".
“That will benefit those making and receiving payments in different currencies and jurisdictions as well as the overall functioning of the global financial system.”
A broader statement on behalf of the testers explained more about what the BIS planned to do in the future in this regard.
“The BIS will continue to work on this and similar projects to explore the user requirements, technical specifications and governance framework needed for interoperable CBDCs,” it said.
“The mBridge project team will continue building the technology and testing it with a view to producing a product with enough features to be used by early adopters in the year ahead and a production-ready system thereafter.”
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