(BIS) The Bank of International Settlements has announced the launch of a prototype for a common digital assets’ platform.
The prototype, dubbed “Project Dunbar,” is geared towards streamlining cross-border payments amid the growing importance of central bank digital currencies.
The prototype was developed in partnership with the Monetary Authority of Singapore, the South African Reserve Bank, the Reserve Bank of Australia, and the Bank Negara Malaysia.
BIS says the development of the shared platform proves that central banks could transact directly with each other, which reduces the reliance on intermediaries, thus cutting time and costs.
Head of BIS Innovation Hub Center in Singapore, Andrew McCormack, says a common platform is an ideal model for payments connectivity, although he acknowledges the challenges to achieve the goal.
RBA Assistant Governor Michele Bullock says the findings from Project Dunbar offer the starting point for future work. He says much is yet to be accomplished in the design and feasibility of multi-CBDC platforms.
The prototype launch now opens the door for further developments, including a detailed platform rulebook, before final development and testing.
BTCUSD is up +3.67%, ETHUSD is up +4.26%
