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BIS to led the testing of Australia, Malaysia, Singapore, and South Africa's Central Bank Digital Currency

Australia, Malaysia, Singapore, and South Africa's Central Banks will be testing out the use of Central Bank Digital Currencies in cross-border transactions. This experiment will be led by the Bank of International Settlements which is the Project Dunbar. The goal of the research is to create prototypes for a single platform that would allow for international settlement of digital monetary systems issued by central banks. This will check if the payments will be less cost and user-friendly and much faster.  

“We are sure that our research on multi-CBDCs for international settlements will pave the way for global payments connection in this next stage of CBDC experimentation,” says Andrew McCormack, head of the BIS Innovation Hub Singapore Centre.

The results will be released in 2022, however, the platform prototypes will be unveiled in November at the Singapore FinTech Festival.

Still, a lot of countries want to explore and create their own CBDCs. Some of the trials are in the early stages and only focused domestically.  A separate BIS-led study including central banks from China, Hong Kong, Thailand, and the United Arab Emirates is looking into the use of CBDCs for cross-border payments.

 

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