Four central banks will test cross-border CBDC settlements

As part of the BIS’s new project named ‘Danbar’, the central banks of Australia, Malaysia, Singapore and South Africa will develop prototypes of platforms for cross-border CBDC settlements. This is reported in a BIS press release.

The project aims to develop prototypes of common platforms for international transfers using multiple CBDCs. They aim to remove intermediaries in CBDC settlements, reducing settlement times and transaction costs.

The project will be led by BIS’s innovation hub in Singapore. Results are expected to be presented in early 2022.

Earlier in March, the BIS urged cooperation in CBDC development, and later the organisation emphasised that central banks developing national digital currencies should pay greater attention to their use in cross-border transfers.

In June, it emerged that the BIS’s innovation hub, together with regulators from France and Switzerland, will test CBDCs in cross-border settlements.

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