The Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland have completed a collaborative experimental test focused on cross-border trading and settlement involving wholesale central bank digital currencies (CBDCs).
According to a report published by the Banque de France on September 28, 2023, the experimental study, named Project Mariana, tested the cross-border trading and settlement of a hypothetical euro, Singapore dollar, and Swiss franc CBDC between simulated financial institutions on a public blockchain.
These tests also incorporated DeFi concepts, including how token standards facilitate the exchange and interoperability of different CBDCs, how bridges could seamlessly transfer tokens between different blockchain networks, and the role of Automated Market Makers (AMMs) within these systems.
The report indicated that the protocols developed during Project Mariana
“could be used by the next generation of financial market infrastructures facilitating cross-border trading and settlement between financial institutions.”
Emmanuelle Assouan, Director General for Financial Stability and Operations at Banque de France, described Project Mariana as a novel experiment with practical solutions for exchanging multi-CBDCs in a global network. In her words:
“Mariana is a novel experiment in several aspects: we have developed a practical solution to exchange multi-CBDCs in a global network interoperable with regional platforms on which the CBDC of each jurisdiction is issued; this could be a forerunner for the functioning of cross-border payments in the future.”
Assouan also mentioned that Banque de France will host a live demonstration of the project during its upcoming conference on October 3, 2023.
Although Project Mariana is considered a success, the report emphasized the need for “further research and experimentation” to fully explore the concepts introduced.
The BIS has been actively advocating for the adoption of CBDC technology by central banks worldwide. Its involvement in Project Mariana is one of several collaborative initiatives it has facilitated in recent months. Notably, the institution recently published a report on Project Sela, a joint project with the Israeli and Hong Kong financial authorities, exploring the direct availability of retail CBDCs to consumers without traditional banks’ involvement.
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