Project will test cross-border CBDC’s in Australia, Malaysia, Singapore and South Africa
The multi-CBDC platforms aim to allow a direct transaction between financial institutions eliminating intermediaries
The Bank of International Settlements (BIS) announced this Thursday (September 2) that central banks of Australia, Malaysia, Singapore and South Africa are currently working on prototype platforms to facilitate the cross-boarder central bank digital currencies (CBDCs).
The initiative comes from Project Dunbar, which gathers the Reserve Bank of Australia, Bank Negara Malaysia, Monetary Authority of Singapore, and South African Reserve Bank in order to develop with BIS tests to use CBDCs for International Settlements.
The official announcement stated:
"These multi-CBDC platforms will allow financial institutions to transact directly with each other in the digital currencies issued by participating central banks, eliminating the need for intermediaries and cutting the time and cost of transactions."
Even though the Bank of International Settlements is yet cause of controversy (Federal Reserve Governor Christopher Waller referred to BIS as "a solution in search of a problem"), the steps that are being made seem interesting if successfully implemented, possibly opening even more doors to digital currencies in general.