Faster and cheaper cross -border transfers - bank report under the direction of to emphasizes the advantages of cryptocurrency - emphasizes

According to a report by the Bank for International Payment Compensation (BIZ) and a group of central banks, digital currencies can lead to faster handling and cheaper transfers. In addition, the banking group has used a prototype that shows how money transfers can be carried out in seconds with very low processing fees.

inexpensive transfers and speed: Report of the bank for international payment compensation says that digital currencies can be more effective

In the second week of September, the head of the Innovation Hub of the Bank for International Payment Compensation (BIZ), Benoît Cœuré, explained that the central banks have to act quickly to develop digital central bank currencies. Cœuré emphasized that a digital currency already exists and that "CBDCs need years to be introduced". According to Cœuré, the BIZ starts a digital currency experiment together with four central banks from the United Arab Emirates, Hong Kong, China and Thailand.

The banking group created a prototype and published a report that describes the results of the group in detail after testing the "Multiple Central Bank Digital Currency Bridge Project (MBRidge)". Bénédicte Nolens, head of the Hong Kong Center of the up to Innovation Hub, explained that digital currencies can be more effective for the banking system and would generally be an advantage for the economy.

"Faster and cheaper cross -border large -scale payments possible, even in legal systems that do not benefit from a dynamic correspondence banking system, would be positive for trade and economic development," said Nolens in A statement published on Monday. The prototype used by the BIZ researchers and the working central banks was built on the Hyperledger Besu-Blockchain from Ethereum.

banking group plans to continue prototype research for distributed LEDGER technology until a "production maturity" solution is created

tests have shown that distributed Ledger technology (DLT) reduces the costs of cross-border exchange by half and the settlement speed is only a few seconds. The report states that the MBRIDGE team endeavors to continue to work on the DLT. The group plans to address legal questions and jurisdiction hurdles in order to develop a "production -ready digital currency solution". The MBridge project is developed in the middle of China and is preparing for the introduction of the digital Yuan when the CBDC approaches the conclusion.

The MBRIDGE collaboration was previously called "Project Inthanon-Lionrock" and was launched by the Bank of Thailand and the Hong Kong currency authority. The two banks published a joint research in 2020 after testing a series of technologies. The report states that ten smaller bank branches of two different locations were involved in DLT model research.

What do you think that the BIZ and the four central banks say that digital currency transactions are faster and cheaper? What do you think of the MBridge DLT prototype? Let us know your opinion on this topic in the comments below.

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