4 Central Banks to Test Cross-Border Settlements with CBDCs

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The central banks of Australia, Malaysia, Singapore and South Africa will create prototype CBDC cross-border digital currency settlement platforms as part of a new Bank for International Settlements (BIS) project called Dunbar.

The objective of the project is to develop prototypes of common systems for international transfers using several central bank digital currencies. They are aimed at eliminating intermediaries in settlements in digital currencies, reducing the time of implementation as well as the cost of transactions.

The project, whose results are expected to be presented in early 2022, will be led by the BIS Innovation Hub in Singapore.

The BIS called in March for cooperation in the field of CBDCs, and later emphasized central banks should pay more attention to their use in cross-border transfers when developing national digital currencies.