Central bank digital currency projects are advancing, with the Banque de France and the Swiss central bank wrapping up a project on Wednesday to test international payments on a distributed ledger platform.
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Carried out with the innovation hub of the Bank for International Settlements (BIS), an institution considered to be the central bank of central banks, this project aimed to assess the technical feasibility of transactions in digital currencies of central banks in a near-real environment. , they indicate in a report.
To test the settlement of cross-border transactions in central bank digital currencies (MNBC), the project involved the banks Natixis, Credit Suisse and UBS, the consultancy firm Accenture as well as the Swiss Digital Exchange, which brings together the digital activities of the Stock Exchange. Swiss.
Jura project
Called the “Jura project”, in reference to the mountain range that separates France and Switzerland, it focused on wholesale digital versions, intended for financial intermediaries, and not on digital currencies accessible to individuals.
In the financial system, cross-border transactions currently rely on expensive, complex, and can be slow infrastructure, the report says, with the project aimed at evaluating new technological options for doing cross-country operations.
Use of blockchain
The aim was to analyze how central bank digital currencies in euros and Swiss francs could be transferred between financial institutions in the two countries using distributed ledger technology operated by a third-party operator.
The distributed ledger is a technology that includes blockchains, or blockchain, which contribute to the creation of cryptocurrencies.
"This project shows how wholesale MNBCs can optimize international settlements, including those involving multiple currencies,"
commented Sylvie Goulard, Deputy Governor of the Banque de France, quoted in the press release detailing the project.
Andréa Maechler, member of the management of the Swiss National Bank, for her part argued that a
"small open economy like Switzerland should have international payment and settlement systems that are efficient and robust"
, arguing that this project helped to understand
"how to harness the potential of distributed ledger technology".
This experiment does not mean that the Swiss central bank intends to launch a digital version of its currency, she insisted.
The goal is to
"be ready"
if distributed ledger platforms gain importance, and demonstrate that they can provide an efficient and secure environment, she explained in a conference call.
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"It is important to be prepared in the event that this technology takes off and takes a systemic turn,"
she said as the question arises of how central banks can ensure the
"safety and resilience"
of
the economy.
financial system in the future.