Financial authorities in France and Singapore are looking at how central bank digital currencies may be used cross-border (CBDCs). The Bank of France and the Monetary Authority of Singapore (MAS) announced on Thursday that they had finished an entire cross-border payment and settlement trial utilizing CBDCs and blockchain platform.
On a permissioned, privacy-enabled platform that uses JPMorgan’s Quorum blockchain as the core, the CBDC trial was performed with help and knowhow from JPMorgan’s digital currency-centered Onyx department.
The Bank of France and MAS emulated cross-border and cross-currency transfers for a Singapore dollar-based CBDC and the euro as portion of the trial.
While the trial was confined to two central banks, the m-CBDC [multiple CBDCs] network’s architecture allowed it to be ramped up to facilitate the involvement of numerous central banks and commercial banks from other jurisdictions, according to the media release.
With blockchain nodes established throughout private and public cloud platforms in France and Singapore, the trial has also shown compatibility across multiple models of cloud architecture.
The trial is one of the most recent accomplishments in the Bank of France’s wholesale experimental initiative, which is expected to be finished by fall of this year. Sopnendu Mohanty, the MAS’s top fintech officer, has stated that the new breakthrough permits financial institutions from other nations to “conduct business with each other straight away in various currencies.”
“By decentralizing financial framework to boost liquidity management and market making functions, our m-CBDC experiment has pioneered new path,” he said.
The most recent CBDC trial represents a significant step forward in the creation of cross-border CBDC solutions. In May, JPMorgan’s Onyx took part in a cross-border CBDC trial for the Central Bank of Bahrain. In addition to the current CBDC development, the US banking behemoth teamed with Singapore’s leading bank, DBS, to create a new firm focusing on inter-bank operations.
