According to Forbes, the experiment, done in partnership with a consortium of central banks, called the Bank for International Settlements (BIS), could reduce fees to such a level that even the lowest income citizens would be able to participate in the global economy.
Currently, when an individual or institution transfers funds across borders, they rely on an intricate network of correspondent banks coordinating across different time zones and currencies. If there were a system where multiple central banks were directly connected, or where banks were able to interact instantaneously on a single network, it would enable 24/7, real-time settlement of cross-border payments. In pursuit of this streamlined system, the MAS partnered with BIS in July 2021 on a new initiative called Project Dunbar to build a common platform where central banks could directly transfer funds across borders using central bank CBDCs.
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