The collaboration between the Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland concluded with a successful trial. The trial involved the trading and settlement of wholesale central bank digital currencies (CBDCs) across borders. The Banque de France released a report on Sept 28, providing detailed results of this test.
The collaborative effort known as Project Mariana involved the Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank. These institutions, operating under the guidance of the BIS, aimed to experiment with cross-border trading and settlement mechanisms for theoretical CBDCs denominated in euros, Singapore dollars, and Swiss francs. The tests used decentralized finance (DeFi) technology concepts on a public blockchain platform among simulated financial institutions.
The concept operates by using a shared token standard on a public blockchain. It also employs bridges to facilitate smooth Central Bank Digital Currencies (CBDCs) transfers across different networks. Additionally, it utilizes a specialized decentralized exchange for automatically executing spot foreign exchange transactions.
BIS & Project Mariana: Fostering Cross-Border CBDC Through Experiments
The experiment participants perceive it as a success but acknowledge that further research and experimentation are necessary. The release notes also underscore the experimental nature of Project Mariana by explicitly stating:
However, Project Mariana represents a purely experimental initiative, void of any indication that the partner central banks intend to issue CBDC, endorse DeFi, or favor any technological solution.
The day before publicly announcing Project Mariana, Agustín Carstens, the General Manager of BIS, emphasized the need to clarify legal frameworks in countries where central banks lack the authority to issue CBDCs.
The BIS plays a crucial role in promoting cross-border CBDCs. Pilot tests are being conducted globally, showcasing their influence. In September, the central banks of Hong Kong and Israel shared the results of Project Sela.
Furthermore, Eddie Yue, CEO of the Hong Kong Monetary Authority, announced an expansion of Project mBridge that already includes China, Thailand, and the United Arab Emirates’ central banks.
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