A number of central banks and the Bank for International Settlements have created prototypes for a common digital currencies platform.
- BIS stated that the two prototypes signal the technical viability of such a platform.
- Codenamed “Project Dunbar,” the program also proves that financial institutions could utilize central bank digital currencies to transact with each other on a shared platform, reducing the need for intermediaries and cutting costs.
- Andrew McCormack, head of the BIS Innovation Hub Centre in Singapore, stated that a common platform is the most efficient way for payments connectivity but remains the most difficult to achieve.
- Central banks across the world are coming to terms with emerging payment technologies initiated by tech firms, including China’s Ant Group Co.
The rapid growth of cryptocurrencies is creating a possible threat to existing monetary systems and pushing for immediate talks on executing cross-border money transfers.
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