CRYPTO NEWS: BIS ESTABLISHES A WORKING GROUP TO INVESTIGATE CBDC.

BIS ESTABLISHES A WORKING GROUP TO INVESTIGATE CBDC WITH THE CENTRAL BANKS OF SWEDEN, NORWAY AND ISRAEL.

THE POTENTIAL OF CRYPTOCURRENCIES TO FACILITATE FAST CROSS-BORDER PAYMENTS IS ONE OF THEIR MOST REMARKABLE ASPECTS, AND IT HAS DRAWN INTEREST FROM AN INCREASING NUMBER OF COUNTRIES THUS FAR. AROUND 105 NATIONS HAVE USED THE TECHNOLOGY, AND SOME, LIKE CHINA, ARE JUST ABOUT TO INTRODUCE THEIR CENTRAL BANK DIGITAL CURRENCIES (CBDCs). THE PROTOTYPES ARE BEING TESTED BY OTHERS, INCLUDING SWEDEN AND ISRAEL.

BIS ESTABLISHES A WORKING GROUP TO INVESTIGATE CBDC WITH THE CENTRAL BANKS OF SWEDEN, NORWAY, AND ISRAEL:

BIS ESTABLISHES A WORKING GROUP TO INVESTIGATE CBDC
BIS ESTABLISHES A WORKING GROUP TO INVESTIGATE CBDC

ACCORDING TO A WEDNESDAY OFFICIAL BLOG POST, THE BANK FOR INTERNATIONAL SETTLEMENTS (BIS), ALSO KNOWN AS THE CENTRAL BANK FOR OTHER COUNTRY’S CENTRAL BANKS, IS IN CHARGE OF AN INITIATIVE CALLED “ICEBREAKER” TO EXAMINE CBDC EFFECTIVENESS IN INTERNATIONAL REMITTANCE AND RETAIL PAYMENTS. ALONG WITH THE THREE CENTRAL BANKS THAT REPRESENT NORWAY, ISRAEL, AND SWEDEN, THE PROJECT INCLUDES THE BIS NORDIC CENTRE’S INNOVATIVE HUB.

THE INNOVATIVE CENTRES RUN BY BIS, AN ALLIANCE OF 61 CENTRAL BANKS, ARE SITUATED IN SEVERAL REGIMES. THE PLATFORMS CARRY OUT ANALYSIS AND TRIAL INNOVATIVE FINANCIAL INSTRUMENTS THAT CAN IMPROVE INTERNATIONAL MONEY TRANSFERS.

THE BIS IS ALSO NOW INVESTIGATING CENTRAL BANK DIGITAL CURRENCY (CBDCs), AMONG OTHER THINGS. THESE ORGANISATIONS WILL CONTINUE TO STUDY THE CBDC UNTIL THE END OF THE YEAR, WITH THE RELEASE OF THE FINAL REPORT ANTICIPATED FOR THE FIRST QUARTER OF 2023.

UNDER BIS SUPERVISION, THE NEW ICEBREAKER CENTRE WILL CREATE THE CONDITIONS FOR CENTRAL BANKS TO CONNECT THEIR DOMESTIC PROOF-OF-CONCEPT CBDC SYSTEMS AND ASSESS THE EFFECTIVENESS OF VARIOUS INTERCONNECTED CBDCs FOR CROSS-BORDER PAYMENTS.

THE BANK OF INTERNATIONAL SETTLEMENTS INNOVATIVE HUB (BISIH) DECIDED TO TEST THE BLOCKCHAIN-BASED FINANCIAL INSTRUMENT AS A RESULT OF CHALLENGES WITH EXISTING INTERNATIONAL PAYMENT TRANSFER METHODS, SUCH AS HIGH COSTS, RESTRICTED ACCESS, AND DRAWN-OUT PROCEDURES.

ADDITIONALLY, THE NEWLY DEVELOPED ARCHITECTURE, WHICH DEPENDS ON CORRESPONDENT BANKING NETWORKS, WILL MAKE IT POSSIBLE FOR RETAIL CBDCs TO SEND MONEY ABROAD INSTANTLY AND AT A LOWER COST THAN IS CURRENTLY POSSIBLE.

THE HIGH COST OF INTERNATIONAL TRANSFERS IS ENCOURAGING CENTRAL BANKS TO USE CBDCs:

BEJU SHAH, THE DIRECTOR OF THE INNOVATIVE HUB NORDIC CENTER, COMMENTED ON THIS EFFORT AND ADDED;

THIS GROUNDBREAKING PROJECT WILL DELVE DEEPER INTO THE TECHNOLOGICAL, ARCHITECTURAL, AND DESIGN TRADE-OFFS AND CONSIDERATIONS, AS WELL AS EXAMINE RELEVANT POLICY ISSUES. FOR CENTRAL BANKS CONSIDERING DEPLOYING CBDCs FOR CROSS-BORDER PAYMENTS, THESE LESSONS WILL BE PRICELESS.

A CBDCs PILOT PROGRAMME WAS SUCCESSFULLY FINISHED BY THE BIS LAST WEEK, WHICH IS NOTEWORTHY. THIS INVOLVES THE UAE, HONG KONG, THAILAND, AND THE CENTRAL BANK OF CHINA. DURING TESTING, THE PROJECT USING SPECIALLY DEVELOPED DISTRIBUTED LEDGER TECHNOLOGY TRANSFERRED $22 MILLION IN FOREIGN EXCHANGE.

ANDREW ABIR, DEPUTY GOVERNOR OF THE CENTRAL BANK OF ISRAEL, STATED THAT;

FOR A TINY AND OPEN ECONOMY LIKE ISRAEL, EFFICIENT AND ACCESSIBLE CROSS-BORDER PAYMENTS ARE CRUCIAL, AND THIS WAS NOTED AS ONE OF THE PRIMARY DRIVERS FOR A FUTURE ISSUANCE OF A DIGITAL SHEKEL. OUR FUTURE WORK ON THE DIGITAL SHEKEL WILL BE GREATLY INFLUENCED BY THE PROJECT’S FINDINGS.

MANY NATIONS HAVE USED CBDCs IN 2022 IN QUEST OF MORE EFFECTIVE AND AFFORDABLE WAYS TO DO INTERNATIONAL BUSINESS. WHILE MANY CENTRAL BANKS HAVE FINISHED DEVELOPING THEIR DIGITAL FIAT, MALAYSIA, SINGAPORE, AUSTRALIA, AND SOUTH AFRICA HAVE ALSO SAID THAT THEY WILL BE JOINTLY TESTING CBDCs.

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CRYPTO NEWS: BIS ESTABLISHES A WORKING GROUP TO INVESTIGATE CBDC.

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