BIS to create a payment platform for CBDCs

In 2021, the BIS Innovation Hub (BISIH) will begin piloting national digital currencies (CBDCs) around the world. This is stated in the project roadmap.

Research will be conducted by BISIH units in Singapore, Hong Kong and Switzerland with the support of local central banks.

The Singapore centre has been tasked with creating an “international settlement platform” on which regulated banks and payment firms will be able to conduct operations using CBDCs.

In Hong Kong, specialists will work on tokenising green bonds, and will also build a bridge to streamline cross-currency transactions using CBDCs and study various models for issuing stablecoins.

The Swiss BISIH will continue work with tokenised assets and wholesale CBDCs under the Project Helvetia initiative.

“This working programme will enable central banks to capitalise on technological change for public good and to support the global financial system,” said Benoît Kere, head of the BIS Innovation Hub.

BIS Innovation Hub work programme 2021/22 by ForkLog on Scribd

Earlier, in October 2020, BIS and seven central banks defined key requirements for CBDCs, including convertibility, convenience, security, speed, scalability and legal reliability.

In December, with the participation of the Swiss National Bank and the country’s largest stock exchange, SIX Swiss Exchange, the tests confirmed the possibility of using CBDCs for settlements on tokenised assets.

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