{"id":50321,"date":"2021-09-28T16:21:26","date_gmt":"2021-09-28T13:21:26","guid":{"rendered":"https:\/\/forklog.com\/en\/?p=50321"},"modified":"2025-09-02T17:27:25","modified_gmt":"2025-09-02T14:27:25","slug":"bis-foresees-dramatic-cut-in-cross-border-payment-costs-from-cbdcs","status":"publish","type":"post","link":"https:\/\/forklog.com\/en\/bis-foresees-dramatic-cut-in-cross-border-payment-costs-from-cbdcs\/","title":{"rendered":"BIS foresees dramatic cut in cross-border payment costs from CBDCs"},"content":{"rendered":"<p>The use of central bank digital currencies (CBDCs) built on blockchain could shorten cross-border transaction times from days to seconds and significantly reduce costs. This was stated by the Bank for International Settlements (BIS) following the pilot program.<\/p>\n<blockquote class=\"twitter-tweet\" data-lang=\"en\">\n<p lang=\"en\" dir=\"ltr\">The common prototype platform for <a href=\"https:\/\/twitter.com\/hashtag\/mCBDC?src=hash&#038;ref_src=twsrc%5Etfw\">#mCBDC<\/a> settlements tested by <a href=\"https:\/\/twitter.com\/hashtag\/BISInnovationHub?src=hash&#038;ref_src=twsrc%5Etfw\">#BISInnovationHub<\/a> and its partners completed international transfers and foreign exchange operations in seconds, compared with the usual several days <a href=\"https:\/\/t.co\/OTSYc9I43A\">https:\/\/t.co\/OTSYc9I43A<\/a> <a href=\"https:\/\/t.co\/bN0Y2gID0a\">pic.twitter.com\/bN0Y2gID0a<\/a><\/p>\n<p>\u2014 Bank for International Settlements (@BIS_org) <a href=\"https:\/\/twitter.com\/BIS_org\/status\/1442747156998365185?ref_src=twsrc%5Etfw\">September 28, 2021<\/a><\/p><\/blockquote>\n<p> <script async src=\"https:\/\/platform.twitter.com\/widgets.js\" charset=\"utf-8\"><\/script><\/p>\n<p>According to the report on the program \u201cInthanon-LionRock to mBridge: creating a platform with multiple CBDCs for international payments,\u201d digital currencies enabled settlements in seconds, instead of three to five working days, bypassing the network of correspondent banks.<\/p>\n<p>The blockchain platform prototype also demonstrated a potential 50% reduction in payment costs due to lower expenses on \u201csome key components of correspondent banking.\u201d<\/p>\n<p>The results were obtained during the second phase of the mBridge project, Inthanon-LionRock, implemented under BIS auspices. The initial pilot participants were the Hong Kong Monetary Authority and the Bank of Thailand. <\/p>\n<p>In the new phase <a href=\"https:\/\/forklog.com\/en\/news\/peoples-bank-of-china-and-uae-central-bank-join-hong-kong-thailand-cbdc-bridge-project\">joined<\/a> the Digital Currency Institute of the People&#8217;s Bank of China and the Central Bank of the United Arab Emirates.<\/p>\n<blockquote class=\"wp-block-quote is-layout-flow wp-block-quote-is-layout-flow\">\n<p>\u201cThe prototype is part of our efforts to develop CBDC technology. The project includes experiments with use cases and testing, balanced with governance, policy and legal considerations with an emphasis on cross-border application,\u201d explained the BIS Innovation Hub head Benua Kere.<\/p>\n<\/blockquote>\n<p>In the next phase of the project, participants will study the existing limitations of the platform, related to privacy controls, liquidity management, as well as the scalability and performance <span data-descr=\"distributed ledger technology\" class=\"old_tooltip\">DLT<\/span> in processing large volumes of transactions.<\/p>\n<p>The BIS is also <a href=\"https:\/\/forklog.com\/en\/news\/four-central-banks-will-test-cross-border-cbdc-settlements\">developing<\/a> a platform for cross-border CBDC settlements in collaboration with the central banks of Australia, Malaysia, Singapore and South Africa.<\/p>\n<p>The institution has also <a href=\"https:\/\/forklog.com\/en\/news\/bis-joins-cbdc-testing-in-cross-border-settlements\">taken part in experiments with the use of digital currencies<\/a> in international settlements between the monetary regulators of France and Switzerland.<\/p>\n<p>In early September, BIS<a href=\"https:\/\/forklog.com\/en\/news\/bis-urges-central-banks-to-accelerate-cbdc-development\">called on central banks to accelerate CBDC development<\/a> due to challenges to the traditional banking system from stablecoins and decentralized finance.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The use of central bank digital currencies (CBDCs) based on blockchain could shorten cross-border transaction times from days to seconds and significantly reduce costs. This was stated by the Bank for International Settlements (BIS) following the pilot project.<\/p>\n","protected":false},"author":1,"featured_media":50322,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"select":"1","news_style_id":"1","cryptorium_level":"","_short_excerpt_text":"","creation_source":"","_metatest_mainpost_news_update":false,"footnotes":""},"categories":[3],"tags":[1430,1095],"class_list":["post-50321","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news-and-analysis","tag-bis","tag-cbdc"],"aioseo_notices":[],"amp_enabled":true,"views":"21","promo_type":"1","layout_type":"1","short_excerpt":"","is_update":"","_links":{"self":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/50321","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/comments?post=50321"}],"version-history":[{"count":1,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/50321\/revisions"}],"predecessor-version":[{"id":50323,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/posts\/50321\/revisions\/50323"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media\/50322"}],"wp:attachment":[{"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/media?parent=50321"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/categories?post=50321"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/forklog.com\/en\/wp-json\/wp\/v2\/tags?post=50321"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}