The central banks of France, Singapore, and Switzerland have successfully concluded a cross-border CBDC test. This is under the guidance of the Bank for International Settlements (BIS). The Banque de France unveiled the report on September 28. Notably, it marks a significant milestone in the world of blockchain technology and finance.
Project Mariana: Revolutionizing Cross-Border CBDCs
Project Mariana is an initiative led by the Banque de France, the Monetary Authority of Singapore, the Swiss National Bank. Under this banner, a comprehensive examination of the cross-border trading and settlement of hypothetical euro, Singapore dollar, and Swiss franc CBDCs was undertaken. This innovative project leveraged decentralized finance (DeFi) technology concepts on a public blockchain to facilitate the transactions.
A Seamless Solution: How Project Mariana Works
Project Mariana relies on several key components to enable the seamless transfer and exchange of CBDCs across different networks:
- Token Standardization: A common token standard was employed on a public blockchain, ensuring compatibility and interoperability.
- Bridging the Divide: Bridges were established to facilitate the frictionless transfer of CBDCs between diverse network. This further helped in eliminating barriers to cross-border transactions.
- Decentralized Exchange: A specialized decentralized exchange was deployed to automate the trading and settlement of spot foreign exchange transactions, streamlining the process.
Successful Experimentation, Future Potential
The participants involved in Project Mariana view the experiment as a resounding success. However, they acknowledge the need for further research and experimentation. It is essential to note that Project Mariana is purely experimental in nature. Also, it does not signify an immediate intent by the partner central banks to issue CBDCs or endorse specific technological solutions or DeFi.
In a related development, BIS General Manager Agustín Carstens emphasized the importance of clarifying national legal frameworks in countries where central banks lack the authority to issue CBDCs. This underscores the ongoing need for regulatory clarity in the rapidly evolving landscape of digital currencies.
BIS Continues to Lead the Way
The Bank for International Settlements remains at the forefront of promoting cross-border CBDCs, with various pilot tests underway worldwide. In September, the central banks of Hong Kong and Israel disclosed the results of their Project Sela. Hong Kong Monetary Authority CEO Eddie Yue also announced the expansion of Project mBridge, which already includes the central banks of China, Thailand, and the United Arab Emirates.