The review of wholesale central bank digital currency (wCBDC) transactions was supported by BIS Innovation Centers in Switzerland, Singapore and Europe, together with the Central Bank of France, the Monetary Authority of Singapore and the Swiss National Bank.
Cross-border trading and wholesale wCBDC settlement between financial institutions were tested using new concepts from decentralized finance (DeFi) technology on a public blockchain.
The parties agreed on a common wCBDC technical standard, bridges for the transfer of CBDC between different blockchains, and the use of an automated market maker (AMM), which is a special type of decentralized exchange for automated trading and settlement of spot foreign exchange transactions.
BIS explained: for the purposes of the project, AMM pooled the liquidity of hypothetical wCDBC in Swiss francs, euros and Singapore dollars using algorithms to automatically evaluate and execute foreign exchange transactions in real time.
The day before, the President of the Bank for International Settlements (BIS), AgustÃn Carstens, called on countries around the world to modernize legislation to legalize the introduction of central bank digital currencies.
Source: Bits
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