Cryptocurrency News

BIS joins central banks in France and Switzerland on cross-border CBDC project

The Bank of France and the Swiss National Bank are teaming up with the Bank for International Settlements Innovation Hub to test a wholesale central bank digital currency (CBDC) system called “Project Jura”.

according to a release The Project Jura pilot study, by the Bank of France on Thursday, will also see participation from a private consortium led by global services company Accenture. Other private consortium establishments include Credit Suisse, UBS, Six Digital Exchange and R3.

The experiment will reportedly use two wholesale CBDCs – one pegged to the euro and the other pegged to the Swiss franc. According to the announcement, the process will involve the exchange of financial instruments against each wholesale CBDC through a distribution versus payment settlement mechanism.

As part of the announcement, the Bank of France revealed that settlement for both parties to the transaction would take place in banks residing in both countries.

The Jura is an extension of the French central bank’s extensive work on CBDCs that has also attracted the participation of several major European financial services institutions. In July 2020, the central bank Selected Eight Financial Institutions To test your interbank CBDC project.

As previously reported by Cointelegraph, Bank of France inks $2.4 million in CBDC pilot Back in December 2020.

However, the Bank of France circular clarified that Project Jura is an exploratory study and there are no plans for any other participating central banks to issue a CBDC.

related: JP Morgan and DBS to Launch Blockchain Cross-Border Payment Platform

International cooperation is becoming a major focus of CBDC development, with efforts to develop viable protocols for cross-border handling between central banks. In Asia, Hong Kong and China are Cross-border use of the latter’s digital yuan.

Actually, both Hong Kong and China are also involved in this. Comprehensive Cross-Border CBDC Project With the central banks of Thailand and the United Arab Emirates. In April, the Eastern Caribbean Central Bank CDBC “dCash” gone live currency in four of the union’s eight nation-states.