Cross-Border Experiment in Wholesale CBDC Completes
Banque de France (BdF), Swiss National Bank (SNB) and Bank for International Settlements’ (BIS) Innovation Hub have successfully completed Project Jura, an experiment in cross-border wholesale CBDC, in collaboration with Accenture, Credit Suisse, Natixis, R3, SIX Digital Exchange and UBS.
Project Jura shows how a wholesale CBDC can act as a safe and neutral settlement asset for international financial transactions.
— Raphael Auer (@RaphAuer) December 9, 2021
Project Jura successfully explored
This project is a public-private collaboration led by the BdF, BIS Innovation Hub Swiss Centre and the SNB. The private sector side consists of a consortium led by Accenture and includes Credit Suisse, Natixis, R3, SIX Digital Exchange (SDX) and UBS.
Project Jura is novel in two ways. First, it tests a new approach to promote secure, fast and efficient cross-border settlements by extending the safety of central bank money to cross-border settlements between resident and non-resident financial institutions using multiple wCBDCs.
Second, it shows a new approach that may give central banks comfort to issue wCBDC on a third-party platform with separate sub-networks and to allow regulated non-resident financial institutions access to wCBDC.
The experiment involved real-value payments and settlements under the existing legal and regulatory frameworks.
Jos Dijsselhof, CEO SIX: “Project Jura shows that wCBDC can offer a secure, fast and efficient way to use central bank money in settling international FX and securities transactions on a single production-grade platform – our own SIX Digital Exchange. We are excited to be part of this pioneering project”
Project Jura is part of a series of CBDC experiments announced by the BdF in July 2020 and continues the wCBDC experimentation by the SNB and BIS Innovation Hub initiated with Project Helvetia. The experiment is of exploratory nature and should not be interpreted as an indication that the BdF or the SNB plan to issue wCBDCs.
Real-time settlement is the key benefit of blockchain-based processes.
Crypto-focused firms are expected to use their high valuations to buy TradFi firms.
The shared private ledger from Baton Systems enhances settlement speed and efficiency.
Customers can have accelerated treatment of financial transactions, exchange and storage of data.
Committee is holding a hearing on Understanding the Challenges and Benefits of Financial Innovation in the US.