How to build credit score Safe personal loans Low-interest personal loans with APR Starting As Low As 3.49%

Its a Wrap – French, Swiss Central Banks Finishes CBDC Payments Test

French, Swiss Central Banks Finishes CBDC Payments Test


Worried about the rise of cryptocurrency? Central banks have come out in favor, with some even testing their own version. The Bank for International Settlements (BIS), the Bank of France, and Swiss National Bank recently completed a collaborative study on wholesale central bank digital currency’s effect on international settlements between financial institutions such as trading companies or banking organizations that do not currently accept cryptocurrencies but may be able to if these new systems are introduced globally.

The announcement of a new banking project that could revolutionize cross-border financial transactions has been met with enthusiasm all around the world. In what is being called Project Jura, Swiss and European banks announced they would explore settling FX payments in euros or francs via CBDCs (Central Bank Digital Currencies). This move thumbs up’ major player involvement into cryptocurrency markets as it will increase liquidity by removing the reliance on traditional finance providers like brokers who take their cut from every transaction made using one currency over another; an action which can cause volatility when done wrong but provide stability if executed correctly.

The Swiss and French central banks have created a new type of financial product, which allows them to issue debt in digital form. This means that there is no need for physical assets like coins or notes when you invest into these projects because they are backed up exclusively by software contracts between parties on either side–the borrower who wants money issued from their loan agreement with an investor looking over it all just as carefully!

Head of the BIS Innovation Hub, Benoît Cœuré, had this to say, “Project Jura confirms that a well-designed wholesale CBDC can play a critical role as a safe and neutral    settlement  asset for international financial transactions.”

Many companies, including Accenture and Credit Suisse, made their way into the wholesale CBDC testing. Natixis also joined them along with R3 Derivatives Exchange who are currently running an experiment on how this new type of financial instrument works!

In a world where the Swiss franc has been gaining ground on its European neighbors, it makes sense that they would explore ways to move money between each other using this new technology. The private banks in France and Switzerland have partnered up with one another for some joint research into how best we can transfer funds through blockchain-based credit cards or bank accounts without having any middlemen take their cut – saving everyone time AND expense!

In the near future, real-value CBDC transactions will be conducted on a digital platform and participants are able to maintain regulatory requirements.


The CBDC Test in Real-World

In June this year, the Bank for International Settlements (BIS) announced yet another new project – Project Jura. The goal of these projects is to create a blockchain-based cash system that could be used by banks around the world as an alternative or supplement traditional dollars and cents transactions; if successful it may also help reduce economic vulnerabilities caused due to reliance on centralized financial institutions like ourselves.

Further, The Hong Kong arm of the BIS Innovation Hub is conducting studies in a number of countries to determine how they could implement Centralized Blockchain Unleashed (CBRE) with local governments and banks alike.

Andréa M Maechler, a governing board member at the Swiss National Bank said, “As a small open economy, Switzerland requires efficient and robust cross-border payment and settlement arrangements. Project Jura explores how distributed ledger technology can be successfully leveraged to map out how future-proof cross-border settlement between financial institutions could look like.”

Sylvie Goulard, the Deputy Governor, Bank of France, said, “Jura demonstrates how wholesale CBDCs can optimize cross-currency and cross-border settlements, which are a key facet of international transactions.”

We will be happy to hear your thoughts

Leave a reply

Fundzer for Funds
Enable registration in settings - general
Compare items
  • Total (0)