The Digital Currency Institute of the People's Bank of China and the Central Bank of the United Arab Emirates join the Multiple CBDC (m-CBDC) Bridge, a cross-border payments project.
The m-CBDC Bridge is a co-creation initiative run in partnership with the BIS Innovation Hub, the Hong Kong Monetary Authority and the Bank of Thailand.The project aims to develop a proof-of-concept prototype to facilitate real-time cross-border foreign exchange payments on distributed ledger technology.
he Digital Currency Institute (DCI) of the People's Bank of China
(PBC) and the Central Bank of the United Arab Emirates (CBUAE) have
joined a central bank digital currency project for cross-border foreign
currency payments.
The m-CBDC Bridge initiative is run in partnership with the
BIS Innovation Hub (BISIH), the Hong Kong Monetary Authority (HKMA) and
the Bank of Thailand (BoT). It will further explore the capabilities of
distributed ledger technologies (DLT) by developing a proof-of-concept
(PoC) prototype to support real-time cross-border foreign exchange
payment-versus-payment transactions in multiple jurisdictions, operating
24/7. It will analyse business use cases in a cross-border context with
both domestic and foreign currencies.
The m-CBDC Bridge project will foster a conducive
environment for more central banks in Asia as well as other regions to
jointly study the potential of DLT in enhancing the financial
infrastructure for cross-border payments.
The aim of the project, which was initiated by the HKMA and the BoT under the name Inthanon-LionRock
and renamed upon the accession of the BIS Innovation Hub Centre in Hong
Kong SAR, the DCI of the PBC and the CBUAE, is to propose solutions and
concepts to alleviate the current pain points in making cross-border
fund transfers. These include inefficiencies, high cost and complex
regulatory compliance.
The participating central banks will take into account the results of the PoC work to evaluate the feasibility of the m-CBDC Bridge
project for cross-border fund transfers, international trade settlement
and capital market transactions in their own jurisdictions.
BIS
© BIS - Bank for International Settlements
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