Both banks have successfully completed a wholesale cross-border payment and settlement with CBDCs.
The Monetary Authority of Singapore (MAS) and Banque de France (BdF) have successfully wrapped up a test to transact cross-border Central Bank Digital Currency (CBDC) which was facilitated by J.P. Morgan’s blockchain arm Onyx.
Simulating the experiment with multiple CBDCs, or m-CBDCs, both banks were able to move a Singaporean fiat-based CBDC and the Euro with cross-border and cross-currency transactions. This was achieved by utilising a smart contract-based, automated liquidity pool with a digital EUR/SGD currency pair that maintained the exchange rate in real-time.
It charts the path for scalable CBDC networks where central banks and commercial banks can work together to achieve the vision of cheaper, safer and more efficient infrastructure for cross border payments.
– Sopnendu Mohanty, CFO of MAS
While the test size was small with two principal banks being involved, the m-CBDC infrastructure could be scaled to include other central and commercial banks in different regions.
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