BIS joins French and Swiss central banks in cross-border CBDC project

The Bank of France and the Swiss National Bank have partnered with the Bank for International Settlements Innovation Center to test a digital currency system (CBDC) called “Project Jura” issued by the Wholesale Central Bank.

According to a statement by the Bank of France on Thursday, the study is The Jura pilot project will also include the participation of a private consortium led by the global service company Accenture. Other private consortium companies are Credit Suisse, UBS, SIX Digital Exchange and R3.

The experiment would use two wholesale CBDCs, one pegged to the euro and the other to the Swiss franc. According to the announcement, The process involves exchanging financial instruments for any wholesale CBDC through a delivery versus payment settlement device.

BIS joins French and Swiss central banks in cross-border CBDC project
BIS joins French and Swiss central banks in cross-border CBDC project

As part of the announcement, the Bank of France announced that both sides of the transaction will be processed through banks based in the two countries.

Jura is an extension of the committed work of the French Central Bank on CBDC, in which several leading European financial services institutions were also involved. In July 2020, the central bank selected eight financial institutions to test their interbank CBDC project.

As Cointelegraph previously reported, the Bank of France invested $ 2.4 million in a CBDC pilot in December 2020.

However, the Bank of France circular made it clear that The Jura project remains an exploratory study and does not indicate any plans for a CBDC to be issued by any other of the participating central banks.

International cooperation is becoming a major focus of CBDC development and efforts are being made to develop workable protocols for cross-border agreements between central banks. In Asia, Hong Kong and China are testing the cross-border use of the latter’s digital yuan.

In fact, both Hong Kong and China are involved in a broader cross-border CBDC project alongside the central banks of Thailand and the United Arab Emirates. In April, the CDBC “DCash” of the Eastern Caribbean Central Bank started operations in four of the eight nation states of the monetary union.

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