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In partnership with seven central banks, the Bank for International Settlements (BIS) has initiated a project aimed at investigating the development of a unified platform for the tokenization of commercial bank deposits and their engagement with wholesale central bank digital currencies (CBDC).
The Bank for International Settlements (BIS) has unveiled Project Agorá, an initiative focused on examining the potential for tokenizing wholesale CBDCs and commercial bank deposits, as well as establishing a programmable platform for their interaction.
The following seven central banks will be involved in the project:
- Bank of France (BdF);
- Bank of Japan (BoJ);
- Bank of Korea (BoK);
- Bank of Mexico (BdM);
- Swiss National Bank (SNB);
- Bank of England (BoE);
- Federal Reserve Bank of New York (NY FED).
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Project Agorá will assess the viability of the subsequent aspects:
- tokenization of central bank currency and commercial bank deposits on programmable platforms;
- enhancing the speed and dependability of cross-border payments while lowering their costs;
- facilitating transactions through tokenization and smart contracts, which is not currently feasible;
- advancing the operation of the monetary system through collaborations between public and private sectors.
Cecilia Skingsley, Head of the BIS Innovation Hub, stated that the project is experimental and seeks to explore and provide shared advantages to the global central banking community. The BIS will serve as an intermediary in this initiative, granting private commercial banks access to the project. Several regulatory financial authorities are also expected to participate in Project Agorá, overseeing the project in terms of regulatory compliance across different jurisdictions.
Hyun Song Shin, Economic Advisor and Head of Research at BIS, mentioned that the main objective of the project is to enhance the global financial system. He believes that tokenization encompasses all the essential functions for achieving this goal, including the consideration of traditional databases and the management of fund transfers.
In 2024, the BIS intends to initiate at least six additional projects focused on tokenization, CBDCs, cybersecurity, and sustainable finance.
Сообщение BIS to Create Platform for Payment and Wholesale CBDC Tokenization появились сначала на CoinsPaid Media.
