The Bank for International Settlements (BIS) and the central banks of France, Singapore and Switzerland successfully tested out cross-border trading of wholesale central bank digital currencies (wCBDC), reports Coindesk.
Project Mariana’s proof of concept used a hypothetical euro, Singapore dollar and Swiss franc wCBDCs between simulated financial institutions. The project relied on “a common token standard on a public blockchain which facilitates interoperability and seamless exchange of wCBDC across varied local payment and settlement systems maintained by participant central banks,” said an accompanying press release.
With more and more nations exploring issuing a wholesale CBDC, which enable the settlement of interbank transfers, including countries in Europe and Asia, Project Mariana wanted to test out how foreign and exchange settlement might look in a world where central banks have issued a CBDC.
“Project Mariana pioneers the use of novel technology for interbank foreign exchange markets. It successfully demonstrated that it is feasible to exchange wholesale CBDC across borders using novel concepts such as automated market makers (AMM),” said Cecilia Skingsley, head of the BIS Innovation Hub. AMM’s are an autonomous trading mechanism and in this experiment was like a decentralised exchange.