France, Singapore and Switzerland are testing cross-border central bank digital currencies ScrgruppEn

The Bank for International Settlements (BIS) and the central banks of France, Singapore and Switzerland have concluded a joint test of cross-border trading and settlement of wholesale central bank digital currencies (CBDCs). Bank of France Issued Report on September 28.

The so-called Mariana Project was developed by the Bank of France, the Monetary Authority of Singapore and the Swiss National Bank under the auspices of the Bank for International Settlements. It tested cross-border trading and settlement of virtual cryptocurrencies of the Euro, Singapore Dollar and Swiss Franc between simulated financial institutions using decentralized finance (DeFi) technology concepts on a public blockchain.

This concept works by using a common token standard on a public blockchain, bridging the seamless transfer of central bank digital currencies between different networks, and a specific type of decentralized exchange to automatically trade and settle spot foreign exchange transactions.

Related: BIS gives central bank digital currencies a thumbs up, middle finger to cryptocurrencies in reports to G20 ministers

According to the statement, participants consider the experiment a success, although “more research and experimentation are needed.” She also expresses reservations about the experimental nature of the Mariana Project, saying:

“The Mariana Project is purely experimental and does not indicate that any of the partner central banks intend to issue a central bank digital currency or endorse DeFi or a particular technology solution.”

The day before the Mariana project was released to the public, Director General of the Bank for International Settlements, Augustin Carstens, spoke about the need to clarify national legal frameworks in those countries where central banks do not have the right to issue CBDCs.

The Bank for International Settlements remains the main promoter of cross-border central bank digital currencies, with several beta tests underway around the world. Thus, in September, the central banks of Hong Kong and Israel released the results of their Sila project, while Hong Kong Monetary Authority CEO Eddie Yeo announced the expansion of the mBridge project, which already included the central banks of China, Thailand and the United States. The United Arab Emirates.