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Singapore, France and Switzerland Successfully Test Cross-Border CBDC Trading

  • 04 Oct 2023

Recently, the central banks of Singapore, France and Switzerland, in partnership with the Bank for International Settlements (BIS), have achieved a significant milestone by conducting successful trials of cross-border trading and settlement involving wholesale central bank digital currencies (wCBDCs).

Key Points:

  • Decentralized Finance Technology Utilized: Innovative decentralized finance (DeFi) technology concepts were employed in the process, leveraging a public blockchain.
  • Proof of Concept for Cross-Border Trading: The project's proof of concept effectively examined cross-border trading and settlement involving hypothetical euro, Singapore dollar, and Swiss franc wholesale CBDCs, engaging simulated financial institutions.
  • The protocols developed through this project are expected to facilitate cross-border trading and settlement among financial institutions in the future.
  • Experimental Nature of Project Mariana: Project Mariana is purely experimental and should not be interpreted as an indication that the partner central banks intend to issue wCBDCs or endorse specific technological solutions or DeFi.
  • CBDC Launch in India: In a separate development, the Reserve Bank of India initiated the launch of the digital rupee, known as Central Bank Digital Currency (CBDC), on a pilot basis on December 1, 2022, offering an electronic form of the sovereign currency.