BIS and Three Central Banks Successfully Complete CBDC Experiment Using DeFi Networks – The Daily Hodl

The global central bank umbrella organization has successfully completed a cross-border trading experiment using central bank digital currencies (CBDCs) and decentralized finance (DeFi) technology.

The Bank for International Settlements (BIS) worked with the central banks of France, Singapore and Switzerland to test the effectiveness of cross-border trading and settlement of “wholesale” CBDCs (referred to as wCBDCs) between simulated financial institutions, according to a BIS press release.

Banks use wCBDCs for the settlement of wholesale payments, as opposed to retail CBDCs, which are offered to the general public for payments, according to the European Central Bank.

Dubbed “Project Mariana,” the BIS experiment used hypothetical euro, Singapore dollar and Swiss franc wCBDCs, as well as a common technical token standard provided by a public blockchain to facilitate the exchanges between the currencies.

Project Mariana also used bridges to transfer the wCBDCs and an automated market maker (AMM) for trades.

Explains the BIS,

“For Project Mariana, the AMM pooled the liquidity of the hypothetical euro, Singapore dollar and Swiss franc wCBDCs with innovative algorithms enabling spot FX transactions to be priced and executed automatically and settled immediately. These protocols could be used by the next generation of financial market infrastructures facilitating cross-border trading and settlement between financial institutions.”

The BIS cautions that Project Mariana was “purely experimental” and doesn’t mean that any of the countries involved actually have plans to issue wCBDCs or utilize DeFi technology.

Don’t Miss a Beat – Subscribe to get email alerts delivered directly to your inbox

Check Price Action

Follow us on Twitter, Facebook and Telegram

Surf The Daily Hodl Mix

Check Latest News Headlines
&nbsp

Disclaimer: Opinions expressed at The Daily Hodl are not investment advice. Investors should do their due diligence before making any high-risk investments in Bitcoin, cryptocurrency or digital assets. Please be advised that your transfers and trades are at your own risk, and any loses you may incur are your responsibility. The Daily Hodl does not recommend the buying or selling of any cryptocurrencies or digital assets, nor is The Daily Hodl an investment advisor. Please note that The Daily Hodl participates in affiliate marketing.

Generated Image: Midjourney

• SEO Powered Content & PR Distribution. Get Amplified Today.
• PlatoData.Network Vertical Generative Ai. Empower Yourself. Access Here.
• PlatoAiStream. Web3 Intelligence. Knowledge Amplified. Access Here.
• PlatoESG. Carbon, CleanTech, Energy, Environment, Solar, Waste Management. Access Here.
• PlatoHealth. Biotech and Clinical Trials Intelligence. Access Here.
• Source: https://dailyhodl.com/2023/10/03/bis-and-three-central-banks-successfully-complete-cbdc-experiment-using-defi-networks/