Central Banks of Australia, Malaysia, Singapore, and South Africa set to test joint cross border CBDC


On Thursday there was a
declaration of a partnership, called Project Dunbar from the Reserve Bank of
Australia on joining forces with the Central Banks of Malaysia, Singapore, and
South Africa to test the use of central bank digital currencies (CBDC) for
international settlements that will enable global payment connectivity.
This cross-border payment trial will
be led by the Bank for International Settlements Innovation Hub. The Reserve
Bank of Australia, Bank Negara Malaysia, Monetary Authority of Singapore, and
South African Reserve Bank will get involved in this project. It will work with
multiple partners to develop technical prototypes on different distributed
ledger technology platforms. The project will aim to reduce the time and cost of
transactions using this platform. Also see if the need for intermediaries can
be removed.
The financial institutions can transact
directly with each other in the digital currencies through these multi-CBDC
platforms. Different governance and operating designs will be explored that
would allow central banks to share CBDC infrastructures. Multiple
partners will develop different distributed ledger technology (DLT) platforms. This
access enables it to benefit from the collaboration between public and private
sector experts in different jurisdictions. In addition to supporting the G20’s
roadmap for improving cross-border payments, the findings will be used to
inform the “development of global and regional platforms”. Around 80% of
central banks are looking at digital currencies.
In November of this year Project
Dunbar is expected to demonstrate technical prototypes of shared DLT platforms
at the Singapore FinTech Festival. In early 2022 BIS are planning to publish
its complete findings. According to RBA the New Payments Platform will be a success
one as it will allows instant digital transfers 24-hours a day.
Head of the BIS Innovation Hub
Singapore Centre Andre McCormack, said “Project Dunbar brings together central
banks with years of experience and unique perspectives in CBDC projects and
ecosystem partners at advanced stages of technical development on digital
currencies,”

Indrani bose
CBW - External Analyst
INDIA