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Banque de France and MAS experiment on cross-border payments using CBDC

Thursday 8 July 2021 12:33 CET | News

The Banque de France (BdF) and the Monetary Authority of Singapore (MAS) have announced the completion of a wholesale cross-border payment and settlement experiment using CBDC.

The experiment, supported by JP Morgan’s Onyx, simulated cross-border transactions involving multiple CBDCs (m-CBDC) on a common network between Singapore and France. This experiment is one of the last of the Banque de France wholesale experiment program, which will be achieved by fall 2021, and is the first m-CBDC experiment that applied automated market making and liquidity management capabilities to reap cross-border payment and settlement efficiencies.

Cross-border payments currently rely on correspondent bank arrangements that are subject to limited transparency on foreign exchange rates, restricted operating hours of payment infrastructures and currency settlement delays due to differences in time zones. To address these challenges, the experiment used a common m-CBDC network, aimed at facilitating cross border payments on a real time basis.

The experiment simulated cross-border and cross-currency transactions for Singapore Dollar (SGD) CBDC and €uro (EUR) CBDC, and was conducted using a permissioned, privacy-enabled blockchain based on Quorum technology. 

For more details, read the full press release here.

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Keywords: central bank, cross-border payments, CBDC, digital currency
Categories: Banking & Fintech | Cryptocurrencies
Countries: World
This article is part of category

Banking & Fintech