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The Bank for International Settlements (BIS) intends to carry on with a series of pilot initiatives in 2024 aimed at investigating tokenization. Additionally, it will delve into the development and interoperability of central bank digital currencies (CBDC), cybersecurity, and sustainable finance.
The BIS Innovation Hub has reported on the achievements of the previous year and detailed the agency’s intentions to persist with its CBDC and asset tokenization trials. A minimum of six new pilot projects are scheduled for 2024.
Cecilia Skingsley, Head of the BIS Innovation Hub, noted that the regulator completed 12 pilot projects in 2023 to investigate the potential of emerging technologies in partnership with central banks, international organizations, and financial institutions. Skingsley stated that the primary objective of the agency is to enhance payment efficiency while ensuring security is not compromised. Over the last four years, the BIS Innovation Hub has conducted nearly 30 projects across various domains. “It’s our responsibility to ensure that technology supports economically significant activities,” Skingsley underscored.
In 2024, BIS analysts will concentrate on examining matters related to cybersecurity, combating financial crime, CBDCs, sustainable finance, and tokenization. Skingsley emphasized the initiation of six pilot projects, specifically:
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- Project Promissa. An initiative by the Swiss National Bank and the World Bank, where the BIS will assess the viability of tokenizing promissory notes.
- Project Aurum. A project aimed at investigating payment privacy using retail CBDCs, with testing conducted in collaboration with the Hong Kong Monetary Authority (HKMA).
- Project NGFS Data Directory 2.0. In partnership with the Monetary Authority of Singapore (MAS), this project seeks to simplify the technical framework of the Network for Greening the Financial System (NGFS) for broader application.
- Project Hertha. A collaborative effort with the Bank of England to evaluate the use of network analytics for identifying financial crime patterns within payment systems.
- Project Leap. A joint initiative with the Banque de France and Deutsche Bundesbank to develop a payment system safeguarded against potential risks posed by the advancement of quantum computing.
- Project Symbiosis. The Hong Kong Monetary Authority (HKMA), in conjunction with the BIS, will investigate the application of artificial intelligence (AI) concerning Big Data in supply chain operations.
In addition to new projects, the regulator will continue to advance existing initiatives, including:
- Project Mandala, which is developing protocols for cross-border payments that enable automatic compliance with regulatory standards across different jurisdictions.
- Project mBridge, which will introduce a minimum viable product (MVP) to commercialize a cross-border payments platform utilizing CBDCs.
- Project Pyxtrial, which is examining technological solutions for monitoring assets that serve as collateral for stablecoins.
In 2023, the BIS frequently criticized cryptocurrencies while supporting the advancement of CBDCs. Furthermore, with the collaboration of several EU banks, a concept for a monitoring system for cross-border crypto transfers was formulated.
Сообщение BIS to Continue Tokenization and CBDC Experiments in 2024 появились сначала на CoinsPaid Media.
