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Settlements in digital currencies of central banks tested by BIS

Settlements in digital currencies of central banks tested by BIS

The Bank for International Settlements (BIS), the central banks of France, Singapore and Switzerland have successfully completed testing of cross-border trading and settlement operations in wholesale CBDCs.

Cross-border trading and settlement of wholesale wCBDC between financial institutions using new DeFi concepts on a public blockchain were tested. The parties agreed on a common technical standard wCBDC, bridges for the transfer of CBDC between different blockchains. Also agreed upon is the use of an automated market maker (AMM), a special type of decentralized exchange for automated trading and settlement of spot foreign exchange trades. BIS said: for the purposes of the project, AMM combined the liquidity of hypothetical wCDBC in Swiss francs, euros and Singapore dollars using algorithms that allow automatic evaluation and execution of foreign exchange transactions in real time.

Let us recall that BIS President Agustin Carstens previously called on countries around the world to modernize legislation in order to legalize the introduction of digital currencies of central banks.

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