According to a report published by the Bank of International Settlements (BIS) and a group of central banks, digital currencies can lead to faster settlement and cheaper transfers. Moreover, the banking group leveraged a prototype that shows how money transfers can be done in seconds with very little processing fees.
Inexpensive Transfers & Speed: Bank of International Settlements Report Says Digital Currencies Can Be More Effective
During the second week of September, the head of the Bank of International Settlements (BIS) Innovation Hub, Benoît Cœuré, explained that central banks need to act quickly in order to develop central bank digital currencies. Cœuré stressed that a digital currency economy already exists and “CBDCs will take years to be rolled out.” Following Cœuré’s statements, BIS, alongside four central banks from the United Arab Emirates, Hong Kong, China, and Thailand, is embarking on a digital currency experiment.
The banking group produced a prototype and published a report that detailed the group’s findings after testing the “multiple central bank digital currency bridge project (mBridge).” Bénédicte Nolens, the head of the Hong Kong center of BIS Innovation Hub, explained that digital currencies can be more effective for the banking system and would be beneficial to the economy in general.
“Enabling faster and cheaper cross-border wholesale payments, including to jurisdictions that don’t benefit from a vibrant correspondent banking system, would be positive for trade and economic development,” Nolens said in a statement published on Monday. The prototype used by the BIS researchers and collaborating central banks was built on Ethereum’s Hyperledger Besu blockchain.
Banking Group Plans to Continue Distributed Ledger Technology Prototype Research Until a ‘Production-Ready’ Solution Is Created
Testing showed that distributed ledger technology (DLT) cuts the cost of cross-border exchange by half and settlement speeds take mere seconds. The report said that the mBridge team aims to keep working on the DLT going forward. The group plans to address legal issues and jurisdiction hurdles in order to develop a “production-ready digital currency solution.” The mBridge project is being developed in the midst of China getting prepared to launch the digital yuan as the CBDC nears completion.
The mBridge collaboration was previously dubbed “Project Inthanon-LionRock” and it was started by the Bank of Thailand and Hong Kong’s Monetary Authority. The two banks published joint research in 2020 after testing a number of technologies. The report notes that the DLT model research involved ten smaller bank branches from two different locations.
What do you think about BIS and the four central banks saying that digital currency transactions are faster and cheaper? What do you think about the mBridge DLT prototype? Let us know what you think about this subject in the comments section below.
Tags in this story
Image Credits: Shutterstock, Pixabay, Wiki Commons
Disclaimer: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.
Note: This article have been indexed to our site. We do not claim ownership or copyright of any of the content above. To see the article at original source Click Here
HOTOR Trunk Organizer for Car - Car Organizer, Foldable Trunk organizer for SUVs & Sedans, Sturdy Car Organization for Car Accessories, Tools, Sundries, Beige, 2 Compartments, 21.3"×12.6"×10.6"
$24.99 (as of December 24, 2024 19:13 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Tear Them All - VIP
$13.99 (as of December 24, 2024 19:05 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Hanes EcoSmart Fleece, Cotton-Blend Pullover, Crewneck Sweatshirt for Men (1 Or 2 Pack)
$11.85 (as of December 24, 2024 19:34 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
Amazon Fire TV Stick HD (newest model), free and live TV, Alexa Voice Remote, smart home controls, HD streaming
$19.99 (as of December 24, 2024 19:34 GMT +00:00 - More infoProduct prices and availability are accurate as of the date/time indicated and are subject to change. Any price and availability information displayed on [relevant Amazon Site(s), as applicable] at the time of purchase will apply to the purchase of this product.)
