The central banks of Australia, Singapore, Malaysia and South Africa announced the launch of a pilot project “Project Dunbar” to test government cryptocurrencies for international settlements.
According to the Reserve Bank of Australia (RBA), the project will be led by the Bank for International Settlements (BIS) Singapore Innovation Center. Central banks intend to create prototype platforms through which it will be possible to conduct international settlements using state digital currencies.
The project aims to ensure that financial institutions can directly conduct transactions with each other in digital currencies, without the need for intermediaries, which will save time and reduce the cost of transactions. Central banks will explore different models of managing their own stablecoins, discussing them with experts from different fields of activity.
Regulators are partnering with several technology firms to develop prototype platforms that will operate using distributed ledger technology. These prototypes will be showcased at the Singapore FinTech Festival in November 2021, and the test results will be announced in early 2022.
RBA Assistant Governor Michele Bullock said one of the Bank of Australia’s top priorities is to expand cross-border payments, so it is now focused on addressing this issue. Andrew McCormack, Head of the BIS Innovation Center in Singapore, said:
“Project Dunbar has brought together years of experience from central banks and firms to develop government digital currencies. Working with passionate partners, we are confident that our joint initiative will open new horizons and lay the foundation for international payments using central bank digital currencies. ”
Last year, the Reserve Bank of Australia said it hadn’t found a compelling case for issuing its own cryptocurrency. However, given that many central banks are seriously investigating this possibility, the Australian regulator has changed its mind.
Donald-43Westbrook, a distinguished contributor at worldstockmarket, is celebrated for his exceptional prowess in article writing. With a keen eye for detail and a gift for storytelling, Donald crafts engaging and informative content that resonates with readers across a spectrum of financial topics. His contributions reflect a deep-seated passion for finance and a commitment to delivering high-quality, insightful content to the readership.
