AI Trading

In 2022, the idea of central bank digital currencies (CBDCs) gained massive popularity. Different countries began working on CBDC projects to identify use cases.

Meanwhile, the Bank for International Settlements (BIS) intends to intensify its efforts with CBDC experimentation in 2023 through its research and development division. Additionally, it plans to launch a new project that will monitor stablecoins.

BIS To Introduce Stablecoins Monitoring Project

Otherwise known as the “bank for central banks,” the BIS says this focus on CBDC experimentation will enhance payment systems. The Bank further stated its agenda for the year encompasses “Project Pyxtrial,” a novel experiment initiated by the BIS Innovation Hub’s London branch.

AI Trading

The purpose of this experiment is to facilitate the systematic observation of stablecoins. Project Pyxtrial aims to create a platform for the surveillance of the financial statements of stablecoins.

The Bank mentioned that a significant number of central banks currently do not have the necessary tools to monitor stablecoins and prevent mismatches between assets and liabilities systematically. It then said, “the aim of the project is to examine different technological instruments that can assist regulators and supervisors in constructing policy structures using integrated data.”

Regarding its CBDC-related initiatives, the international Bank said it would concentrate more on retail CBDCs such as the two-layered system known as Aurum. The BIS initially carried out a pilot on the system last July.

Central Banks Moving Towards CBDC Adoption

According to the BIS, 15 of the 26 projects active in recent years are related to CBDCs and advancements in payment systems. The BIS noted that central banks are becoming more aware of the benefits of CBDCs.

“This focus mirrors the priorities and interests of central banks and is aligned with the program of the G20 nations to enhance cross-border payments,” the BIS added. In addition, the organization wants to experiment with retail CBDC distribution using an open Application Programming Interface (API) ecosystem, in collaboration with the Bank of England, in a project called Rosalind.

Last September, the BIS completed a trial run for a platform called Multiple CBDC Bridge, short for mBridge. Central banks participating in the pilot program include the UAE, China, Thailand, and Hong Kong central banks.

Additionally, twenty commercial banks from these nations took part in the project. Meanwhile, the Atlantic Council’s CBDC tracker reveals that only 11 governments have fully introduced a CBDC.

All these countries are in the Caribbean region, except for Nigeria. Furthermore, CBDC pilot projects are underway in over 17 countries, especially in Asia, including South Korea, Russia, China, Malaysia, Thailand, India, and Kazakhstan.

AI Trading

HeraldSheets.com produces top quality content for crypto companies. We provide brand exposure for hundreds of companies. All of our clients appreciate our services. If you have any questions you may contact us. Cryptocurrencies and Digital tokens are highly volatile, conduct your own research before making any investment decisions. Some of the posts on this website are guest posts or paid posts that are not written by our authors and the views expressed in them do not reflect the views of this website. Herald Sheets is not responsible for the content, accuracy, quality, advertising, products or any other content posted on the site. Read full terms and conditions / disclaimer.

George Ward

By George Ward

George Ward is a crypto journalist and market analyst at Herald Sheets, known for his engaging articles on the latest digital currency trends. With a background in finance and journalism, he presents complex topics accessibly. George holds a degree in Business and Finance from the University of Cambridge.