Australia, Malaysia, Singapore and South Africa join forces around MNBCs
The Reserve Bank of Australia announced the initiative, dubbed “Project Dunbar,” in a statement released last week. The aim of the maneuver is to develop prototypes for common platforms, which will allow international settlements with the various MNBCs developed by the countries in question. Everything will be developed in collaboration with the innovation hub of the Bank for International Settlements (BIS).
This new system will allow the four central banks to operate “direct transactions between institutions, reducing costs and increasing speed”. The press release specifies that the project will be implemented with “multiple partners” on “different distributed ledger platforms”. The central banks in question have in fact chosen various architectures for their MNBCs.
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Interconnectivity: a major development axis?
The results of this first study phase will be published in 2022. Technical prototypes will however be presented from November 2021 at the Singapore FinTech Festival.
According to Andrew McCormack, head of the BIS innovation hub, the goal is to position the four central banks at the forefront of this technological development:
“With this group of competent and passionate partners, we are confident that our work on multiple MNBCs will bring innovation to this new stage of experimentation. […] and create foundations for global payments connectivity. “
This is indeed a major step. The majority of the world’s central banks are currently working on MNBCs, but the question of interconnection could arise soon enough. Institutions will thus be able to promote fluid exchanges despite the wide variety of technologies used.
👉 To go further, discover our guide to central bank digital currencies (MNBC)
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About the author: Marine Debelloir
Deputy Editor-in-Chief on Cryptoast, I fell into the pot of cryptocurrencies a few years ago. I am passionate about the innovative technologies that arise from the blockchain and I like to find the most delicious information to share with you.
All articles by Marine Debelloir.