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October 5, 2022
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BIS and the Swiss Bank have completed two CBDC concept tests –

The Bank for International Settlements and the Swiss National Bank are investigating the benefits of implementing a central bank’s digital currency, i.e. CBDC, with the use of technology blockchain.

Helvetia project

As announced on December 3, the Swiss BIS Innovation Hub Swiss Center successfully completed two concept tests. BISIH combined the existing payment systems with a distributed ledger and cleared the tokenized ones assets using wholesale CBDC.

The new initiative, known as “Project Helvetia”, is a joint venture between BISIH, SNB and the Swiss Stock Exchange Six Group.

The stock exchange stated that Project Helvetia investigated the technological and legal possibilities of transferring digital assets by issuing wholesale CBDC on the Six Digital Exchange platform. The new platform is expected to be launched in the near future, offering the issuance, trading, settlement, management and storage of tokenized assets.

As noted by financial institutions, the experiment does not mean that the Swiss central bank will issue wholesale CBDCs,

Andréa Maechler, a member of the SNB board, emphasized that the Swiss central bank did not want to miss opportunities to improve the financial system with the help of new technologies:

“No matter what technologies the next ones adopt Financial markets, the security and reliability of Swiss financial infrastructure must be preserved. If [technologia księgi rozproszonej] can bring significant improvements in securities trading and clearing, then the SNB will be prepared.

Although it seems that DLT may be a useful tool in the future of the financial system, there is still no clear consensus as to whether this technology is necessary to launch CBDC. In September 2020, SNB executives and the Deutsche Bundesbank concluded that global retail CBDC projects do not need to benefit from blockchain.

CBDC in the world

The United Arab Emirates and Saudi Arabia recently published a joint report on the Aber project, their single digital currency.

In mid-November, Deutsche Bank called on the whole of Europe to accelerate work on the issue of central banks’ digital currencies. The institution says the ongoing COVID-19 pandemic has accelerated The “digital cash revolution”. According to the bank, this abrupt change will eventually enable CBDCs such as the Chinese yuan and the Swedish e-krona to replace cash.

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