The Bank for International Settlements (BIS) in collaboration with the central banks of France, Singapore, and Switzerland has successfully trialed cross-border transactions using wholesale central bank digital currencies (wCBDC). This was revealed in a report released on Thursday. You can download it here.
Under the banner of Project Mariana, a prototype was developed using simulated wCBDCs representing the euro, Singapore dollar, and Swiss franc. The experiment hinged on a unified token standard on a public blockchain, ensuring smooth wCBDC transactions across distinct payment systems overseen by the involved central banks.
As the global interest in wCBDCs grows, especially in European and Asian nations, Project Mariana aimed to visualise the future of foreign exchange and settlements in a world dominated by central bank-issued CBDCs. Earlier in June, the Banque de France hinted at the potential of wCBDCs in enhancing international payments.
Highlighting the innovation behind Project Mariana, Cecilia Skingsley, who leads the BIS Innovation Hub, commented, “Project Mariana showcases the innovative application of technology in the interbank foreign exchange domain. It validates the possibility of transacting wCBDCs across borders employing advanced methods like automated market makers (AMM).” In this context, AMMs functioned similarly to a decentralized trading platform.
Furthermore, the project incorporated smart contracts, allowing central banks to oversee their wCBDCs without direct involvement in the core platform. “The decentralized finance (DeFi) features examined in the experiment, especially automated market makers, might pave the way for cutting-edge financial market frameworks,” the official statement added.
