CBDCs and improvements in payment systems are still interesting areas for The International Bank for Settlements. The BIS would desire to set up new public goods linked to technology for central banks.
The International Bank for Settlements intends to encourage the projects of regulatory technology and supervision of the transactions that get executed with digital assets, such as bitcoin (BTC) and other relevant cryptocurrencies this year.
The financial entity with roots in Switzerland highlighted the information during a press release. The entity said the Innovation Group would release new central bank digital currency (CBDC) projects this year. According to the institution, the entity plans to bring new technological public goods for central banks while targeting green finance and cyber security-oriented projects.
According to Agustín Carstens, along with the expanded network of centers and the plans to be released this year, the entity would bring a solid stance to set more innovations solidly and sustainably.
The entity intends to work while taking advantage of the benefits of digital technology, serving the interested public, and working in parallel with the central bank, the community, academia, and even the private sector.
The Bank for International Settlements also plans to apply several initiatives to improve global cross-border payments evaluating the practical and technological complexities that the implementation of payment agreements represents.
These Projects Are about to Start Soon
The BIS revealed the projects that will soon start to get implemented. One of them is Rio, which will focus on how central banks can use streaming data to police electronic markets. The first phase creates a prototype that gathers and processes large amounts of currency data in real-time. In the next one, the team would create a production-ready user dashboard.
Another project joined efforts with the Central Bank, and now together, they gather all the data from two CBDCs, Helvetia II and Jura. They will then look at CBDC-related projects that could apply Arena, a private blockchain that serves as a testing ground for central banks in the nation.
The Ellipse project creates a platform that will help financial regulators extract, query, and study data from different sources, using artificial intelligence and machine learning as tools.
In Hong Kong, a project related to DeFi will intend to learn if they can improve financing for small and medium-sized businesses, which is a historically underserved market segment, according to the Bank for International Settlements.
In London, they will evaluate how people and companies can take more advantage of CBDCs. This evaluation would take effect through a project that will allow the development of updated payment solutions.
And a second project will create a platform that supports applications that people and companies can use to save, transfer and pay with CBDC to retailers.
Lastly, at the Nordic Center, there will be projects that intend to demonstrate how a holistic view of payment data serves as a tool to monitor illegal activities such as money laundering, and terrorist financing, it also includes tax evasion.
By: Jenson Nuñez
