TL; DR Breakdown
- BIS wants a digital currency for international settlement
- The pilot trial was successful
- Technological advancement will push CBDC’s success
Digital Currencies has continued to become one that most nations want to adopt. Although some countries have made significant progress, others are still in the testing phase. The innovation arm of the Bank of International Settlement has announced the completion of a pilot test for its new shared CBDC platform. According to the statement, the test was carried out by four financial institutions, including South Africa.
BIS’ CBDC trial was a success
The CBDC trial sought to test out diverse digital currencies using the same platform across the mentioned premier institutions. The pilot test of the CBDC, was made known to the public in September last year. Also, a report stating how it was finalized was made available today.
The report stated that the banks could use a platform to exchange CBDCs of diverse financial institutions. The developers accounted for several factors before creating the prototypes for testing. One of the factors considered was solving issues related to receiving payments across different countries. It also talked about helping the payment network across different countries. With success garnered from the project, it is safe to say that a multi-currency would be a success.
Technological advancement will push CBDC’s success
The series of tests also discovered that the effectiveness of the digital currency was born out of the way it was designed. Regarding that, the developers considered the accessibility of the currency while looking into the governance and the boundary. The developers said that the project showed that the currencies could exhibit trust and mutual control. Boss of the innovation arm, Andrew McCormack, mentioned that the technological advancement made most of the successes enjoyed possible.
He also stated that it would go a long way to help the future of global platforms. Asides from this BIS-led innovation, France, and Switzerland were actively working on a CBDC that will work across the borders of most Europe countries. If this is possible, it could pave the way for developing a digital currency among other nations. About 90 countries are now working on a their digital currenvy, further pushing the narrative for an international success.