BIS marks CBDC pilot as ‘successful’ with $22 million in transactions

A multi-jurisdictional central bank digital currency (CBDC) pilot project has been deemed “successful” by the Bank for International Settlements (BIS) after a month-long testing phase that facilitated $22 million in cross-border transactions in real value.

The central banks of Hong Kong, Thailand, China and the United Arab Emirates (UAE) participated in the pilot program along with 20 commercial banks from these regions.

More than $12 million in value was issued on the test platform, which facilitated 164 foreign exchange transactions and cross-border payments between participating companies for a total of more than $22 million in value according to a LinkedIn post. BIS Tuesday.

BIS chart on CBDC pilot. Source: LinkedIn

Daniel Eidan, Advisor and Solutions Architect at BIS, said the pilot focused on wholesale CBDC cross-border payments and the role of central banks on the platform, adding “we will likely consider more commercial aspects in the next stages of our work”.

The platform, known as “mBridge” short for Multiple CBDC (mCBDC) Bridge is part of the Inthanon-LionRock project, a Distributed Ledger Technology (DLT) CBDC cross-border payment project initially launched in September 2019 involving Thailand and Hong Kong. central banks.

With the first pilot of the platform now complete, the project has entered its third and final stage before a minimal product version with only the basic platform features is released.

A fully functional CBDC cross-payments platform will only be ready after revisions have been made taking into account feedback from the minimum version, according to a September 2021 BRI report.

Related: Russia aims to use CBDC for international settlements with China: report

BIS added that a detailed mBridge progress report will be released in October, which will discuss the technical design, legal, policy and regulatory considerations as well as a future mBridge roadmap.

A June report from the BIS found that around 90% of central banks are investigating the adoption of CBDCs. Currently, 11 CBDCs have launched, 15 are in pilot phase and 26 are in development according to the Atlantic Council think tank CBDC tracker.

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