A pilot plan to create a new digital currency platform and accelerate cross-border payments is led by the G7, the Federal Reserve and the main central banks of Europe, Korea and Japan. 40 of the world’s main banks have joined the project.
The project was named Agora. “Seven central banks in total are involved and their goal is to test whether so-called tokenized bank deposits can be used in combination with tokenized central bank currencies (CBDCs) in a faster and more advanced system.”
This pilot will focus on a wholesale CBDC, used only between banks and not by the public, with the aim of solving the “problems posed by different time zones, legal requirements, and regulatory and technical systems.”
On the list of participating banks are major lenders such as JPMorgan, HSBC, UBS and the Japanese MUFG.
The banks of the Ágora project and another called mBridge are working on the development of a CBDC aimed at these purposes, “launched in 2021 by the central banks of China, Hong Kong, Thailand and the United Arab Emirates, to which Saudi Arabia has recently joined.”
M. Pino
Source: eleconomista
(Reference image source: Aakash Dhage in Unsplash))
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