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.
Every day we send out a free e-mail with the most important headlines of the last 24 hours.
Subscribe now
We welcome comments that add value to the discussion. We attempt to block comments that use offensive language or appear to be spam, and our editors frequently review the comments to ensure they are appropriate. If you see a comment that you believe is inappropriate to the discussion, you can bring it to our attention by using the report abuse links. As the comments are written and submitted by visitors of the The Paypers website, they in no way represent the opinion of The Paypers.