In addition to launching a new project to track stablecoins, The Bank for International Settlements (BIS) has announced that it will increase its focus on testing Central Bank Digital Currencies (CBDCs) in 2023.
The BIS, headquartered in Switzerland, stated on February 7 that, to enhance payment systems, its Innovation Hub will intensify its attention on CBDCs in 2023.
In 2023, the #BISInnovationHub will increase its focus on improving payments systems and experimenting with #CBDCs; on shaping the future of financial regulation and supervision; and on greening and securing the financial sector. Read more: https://t.co/565s9KK1gn pic.twitter.com/izlF1u0Q22
— Bank for International Settlements (@BIS_org) February 7, 2023
Project Pyxtrial, which the bank defined as a recent experiment being introduced by the London division of the BIS Innovation Hub to enable the comprehensive monitoring of stablecoins, is also included in the bank’s work agenda for the upcoming year.
BIS stated:
“This year’s work programme also includes Project Pyxtrial, a new experiment being launched by the Hub’s London Centre to enable the systemic monitoring of stablecoins.”
According to the BIS, Pyxtrial will develop a platform to monitor stablecoin balance sheets and prevent asset-liability mismatches, as most central banks lack the necessary tools.
The project will also explore various technological tools that could help regulators and supervisors develop legislative frameworks based on relevant data.
The BIS will put a greater emphasis on retail CBDCs for its CBDC-related projects, such as the two-tiered system dubbed “Aurum,” set to launch in Hong Kong in July 2022.
The bank reported that 15 of its 26 ongoing projects over the past two years have involved CBDCs and the upgrading of payment systems, driven by the growing awareness of central banks. The BIS is also focusing on projects that influence the future of regulation, supervision, and finance.
In September 2022, the BIS completed a test program for mBridge, a platform for multiple CBDCs. According to the CBDC tracker maintained by the Atlantic Council, only 11 nations, mostly in the Caribbean, have fully launched a CBDC, excluding Nigeria.
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