The application of wholesale central bank digital money in cross-border payments has been successfully tried by the Bank of France, the Swiss National Bank (SNB), and the Bank for International Settlements. The project made use of distributed ledger technology and was completed with the assistance of private companies.

According to the participants in the trial, central bank digital currencies (<a href="https://www.cryptoknowmics.com/news/australian-reserve-banks-project-atom-cbdc-research-notices-several-benefits/">CBDCs</a>) can be used effectively for international settlements between financial institutions, according to an experiment conducted by the monetary authorities of France, Switzerland, and the Bank for International Settlements (BIS).

https://twitter.com/BTCTN/status/1469148049775734785

The banks indicated that Project Jura focused on settling foreign exchange transactions in wholesale CBDCs in euro and Swiss francs, as well as creating, transferring and redeeming a tokenized euro-denominated French commercial paper between French and Swiss financial institutions.

The pilot featured real-value transactions and the direct transfer of euro and Swiss franc wholesale CBDCs between commercial banks in France and Switzerland on a single distributed ledger platform controlled by a third party. Accenture, Credit Suisse, Natixis, R3, SIX Digital Exchange, and UBS were among the private companies involved.

The partners believe that issuing wholesale CBDCs by giving regulated non-resident financial entities direct access to central bank money creates policy concerns. They used a novel technique to address these issues, utilizing subnetworks and dual-notary signing, which is likely to give central banks confidence in issuing wholesale CBDCs on third-party platforms.

Central Banks of France, Switzerland and BIS Complete Cross-Border CBDC Trial

The application of wholesale central bank digital money in cross-border payments has been successfully tried by the Bank of France, the Swiss National Bank (SNB), and the Bank for International Settlements.

Prabhjeet Bhatla is a cryptocurrency writer covering startups and a researcher since 2020. She has authored many articles for Entrepreneur India and APAC (digital and print) on cryptocurrency and ever-evolving Blockchain, the technology behind Bitcoin, and other cryptocurrencies. She specializes in applied cryptography, privacy-enhanced information storage systems, anonymous cryptocurrencies, elliptic curve crypto-systems, and satellite television piracy.

Central Banks of France, Switzerland and BIS Complete Cross-Border CBDC Trial

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