Bank of International Settlement is working on a CBDC Settlement Platform
• CBDC is BISIH’s top priority for the year
• Bank of International Settlement has centers in three countries
• China has tested its national digital currency
The Bank of International Settlement has listed out plans to begin series of CBDC trials globally this year. Bank International Settlements’ Innovation Hub (BISIH) has declared the CBDC research as its topmost priority for the New Year. BISIH intends to delve into how possible it is to have faster and less costly cross-border payments with the use of central bank digital currencies.
The Innovation Hubs will serve as the driving force of the Bank of International Settlement’s ambition in countries such as Hong Kong, Switzerland and Singapore. The innovation hub centers in those countries were founded in alliance with the local central banks. The innovation hub center in Singapore is saddled with the responsibility of erecting a global settlement platform whereby regulated banks and financial companies can transact with several CBDCs.
Bank of International Settlement tests Platform in Countries
The center in Hong Kong is tasked with working on the project of green bond tokenization. They are also tasked with the responsibility of finding a method by which foreign exchange transactions with the use of CBDC can be facilitated. Switzerland’s innovation hub center has finished two proofs of concept which connects former payment methods to trial settling tokenized assets employing the use of wholesale CBDC.
Central Banks are Exploring CBDC
Many world’s Central Banks are currently researching into the concept of central bank digital currencies and designing many testing plans. Although some countries have initiated editions or versions of their national digital currencies. China is said to be the only country to have finished the process of developing and launching a full-fledged design to test its digital currency. In previous updates and reports, Cayman Island released a national digital currency this year. Several countries of the world such as USA, Canada, the Philippines, and many others are delving into CBDCs.