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October 2, 2022
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The Bank for International Settlements is building the CBDC clearing platform –

As the main priority of the Bank for International Settlements’ Innovation Hub (BISIH) in 2021, research on the digital currency of the central bank (CBDC) was announced.

Faster and cheaper cross-border payments

According to the annual work program, BISIH is planning “Explore the possibility of faster and cheaper cross-border payments” using central bank digital currencies. BISIH also said it will investigate prototypes of “CBDC’s tiered retail distribution structures” and distributed ledger technology to issue “tokenized green bonds for retail investors”.

BIS initiatives will be driven by Innovation Centers in Hong Kong, Singapore and Switzerland, established in cooperation with local central banks.

Singapore’s BISIH center is tasked with building an “international clearing platform” where regulated banks and payment companies can clear transactions with a variety of CBDCs.

The Hong Kong center will work on a green bond tokenization project, build a bridge to facilitate currency transactions using CBDC, and explore various models of stablecoin issuance.

Switzerland has completed two concept tests

The Swiss BISIH center has already completed two concept tests combining existing payment systems with trial settlement of tokenized assets with the use of wholesale CBDCs as part of the Project Helvetia initiative. Andréa Maechler, a member of the SNB board, emphasized then that the Swiss central bank did not want to miss opportunities to improve the financial system with the help of new technologies:

“Regardless of what technologies new financial markets adopt, Swiss financial infrastructure must be safe and reliable. If [technologia księgi rozproszonej] can bring significant improvements in securities trading and clearing, then the SNB will be prepared.

Now the head of BISIH, Benoît Cœuré, said:

“This work program demonstrates our commitment to finding the most practical ways to make the most of technological change for the benefit of central banks and the creation of public goods to support the global financial system.”

In November, the BIS recommended “built-in” reporting requirements for future stablecoin issuers, advocating an automated data exchange process between issuers and regulators.

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