Several large banks in Asia have come together to create a cross-border digital central bank currency (CBDC).According to a joint announcement that aired on February 23.
Nickname “Multiple Central Bank Digital Currency Bridge” or “m-CBDC”The project envisions the combination of the Hong Kong Monetary Authority, the Bank of Thailand, the Central Bank of the United Arab Emirates and the Digital Currency Institute of the People’s Bank of China Prototype of a CBDC with DLT or distributed ledger technology.
On the basis of The research project “Inthanon-LionRock” started in 2019The final phase of CBDC exploration will develop a proof of concept to “facilitate cross-border payments in real time in a context with multiple jurisdictions and around the clock”points to the display.
The stated goal of the project is Eliminate “weaknesses” in cross-border transfersThese include cost inefficiencies and the complex regulation that accompanies the movement of money from one country to another.
As previously described by the Deputy Governor of the Bank of Thailand, Maths supapongse::
The model provides a network of cross-border corridors where participants can instantly transfer peer-to-peer funds and in an atomic PvP fashion. The design and main results of the project have added new dimensions to the studies of the headquarters banking communities in the field of cross-border money transfer “.
The central banks involved in the project hope to attract more institutions to the program and they aim to create a more favorable environment for CBDC exploration in Asia and beyond.
The rapid emergence of cryptocurrencies in recent years has forced numerous governments and central banks to create a digital alternative to decentralized currencies like Bitcoin (BTC), Ether (ETH) and many others.
The inability of governments to control or track the flow of cryptocurrencies will undoubtedly make CBDCs a habit in the years to come.China is ahead of the curve in creating CBDC and is already testing biometric identification hardware wallets for its digital yuan.