This site uses cookies to improve your experience. To help us insure we adhere to various privacy regulations, please select your country/region of residence. If you do not select a country, we will assume you are from the United States. Select your Cookie Settings or view our Privacy Policy and Terms of Use.
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Used for the proper function of the website
Used for monitoring website traffic and interactions
Cookie Settings
Cookies and similar technologies are used on this website for proper function of the website, for tracking performance analytics and for marketing purposes. We and some of our third-party providers may use cookie data for various purposes. Please review the cookie settings below and choose your preference.
Strictly Necessary: Used for the proper function of the website
Performance/Analytics: Used for monitoring website traffic and interactions
Offline settlements with a digital pound: Lessons from the BoE’s report 16 June 2025 by Payments Intelligence LinkedIn Email X WhatsApp What is this article about? It highlights major trade-offs in security, privacy, and policy that must be addressed before offline CBDC payments can scale. Why is it important? What’s next?
The Bank for International Settlements says it multi-central bank CBDC platform, Project mBrige, is ready to accept value added products and new usecases as it reaches minimum viable product stage (MVP).
James Hurren explores what early CBDC deployments across Asia, the Caribbean, and Europe reveal about usage, adoption, and the future of cross-border digital money. Central bank digital currencies (CBDCs) have rapidly evolved from theoretical concepts into live pilots and national deployments.
This PoC involved executing real-time cross-border test transactions between various Central Bank Digital Currency (CBDC) systems. The project tested the feasibility of conducting multilateral cross-currency transfers through the UDPN, involving both Distributed Ledger Technology (DLT) and non-DLT-based CBDC technologies.
Swift, the global financial messaging cooperative, revealed that the latest round of experiments conducted within a collaborative Central Bank Digital Currency (CBDC) sandbox has shown promising results for the application of CBDCs and digital tokens. said Tom Zschach, Chief Innovation Officer at Swift.
The processes included converting reserve account balances into digital Rupiah and vice versa, ensuring seamless interoperability with Bank Indonesias Real-Time Gross Settlement (BI-RTGS) system. Following the success of the Immediate State, the Intermediate State phase will expand digital asset usecases.
Through the project , HKMA explores financial market infrastructure that facilitates seamless interbank settlement of tokenised money through a wCBDC. Having completed building the sandbox, HKMA will use it to facilitate interbank settlementusing experimental tokenised money, focusing on transactions involving these tokenised assets.
But as to what a CBDC might look like in the eurozone, ECB executive board member Yves Mersch said a speech earlier this year that retail central bank digital currency (CBDC) is a game-changer and that retail CBDCs would be a “main focus.”
Similarly, Project Nexus , spearheaded by the Bank for International Settlements (BIS), aims to improve cross-border payment systems through faster, cheaper, and more transparent transactions. These include embedded finance, a market thats projected to reach US$7.85
As reported by Reuters , the Sand Dollar – a new digital currency issued and backed by the Bahamian central bank – is now in circulation, and bit by bit, has been making inroads into retail usecases. Central Banks Around the World Eye CBDCs. Such central bank efforts toward CBDC might soon get a helping hand.
And there’ll be quite a bit of tinkering with the technology (especially the infrastructure) and the usecases to get there. Central bank digital currencies (or CBDCs) have been gathering steam, at least as a concept. Digital dollars are a maybe – but if so, not for a while. No Race To Rollout . Interoperability Is Key.
But: The bank is keeping an eye on the experiences and progress of other nations, and still is researching its own technological and “policy implications” of wholesale forms of CBDC. Separately, of course, the People’s Bank of China (PBOC) has said that a test of a CBDC rests with small retail transactions — not large-volume transactions.
Some central banks are banding together to form a group that will study ways and means of issuing central bank digital currencies (CBDC), according to a release by the Bank of England on Jan.
Swift’s solution has already been shown to enable cross-border transfers and connect CBDCs on different networks with each other, as well as with fiat currencies. Working closely with CLS, the connector was shown to be interoperable with the existing market infrastructure, facilitating FX netting and settlement via CBDCs.
Beyond bitcoin – that marquee name of crypto and its brethren, which have yet to escape wild price swings and speculative fervor – lies the prospect of CBDCs. India, according to reports earlier this fall, is mulling a ban on cryptos in general, but may indeed look more deeply into a CBDC. Beyond that, national efforts are piecemeal.
In other news, the Reserve Bank of Australia (RBA) is exploring the potential of a central bank digital currency (CBDC), in partnership with the National Australia Bank , Commonwealth Bank , Perpetual Limited and ConsenSys Software , the bank announced in a press release. RBA expects to finish the project at the end of this year.
Through the new project, Hong Kong Monetary Authority will explore innovative financial market infrastructure (FMI) that will facilitate seamless interbank settlement of tokenised money through a wholesale CBDC. ” As part of Project Ensemble, later this year, HKMA will launch a new wCBDC Sandbox.
The Bank for International Settlements (BIS) defines offline payments as the transfer of a digital money token between devices that takes place without the payer and payee requiring a networked connection to any ledger system or backend system to complete the payment.
Efforts were also made to advance digital assets, tokenization and central bank digital currency (CBDC) experimentation with initiatives such as Project Guardian and Project Orchid expanding to include more usecases and moving towards “live” pilots.
The race toward central bank digital currencies (CBDCs) is tightening, with Brazil reportedly looking to launch one by 2022 in a bid to help digitize payments. Some 70 percent of Brazilians use cash as their main payment choice, as reported by Coingeek.com.
As noted in this space last week, about 80 percent of 66 central banks queried by the Bank of International Settlements (BIS) are working on central bank digital currencies (CBDC). He pointed to the concept of synthetic central bank digital currencies ( CBDC ).
The arrangement will allow OpenPayd to enable its clients to convert between fiat currencies and USDC, with the goal of reducing settlement friction and enabling near real-time fund transfers.
The age of digital currencies might be fully upon us, but key questions swirl about how to issue and regulate cryptos – especially stablecoins. Among the potential and evolving usecases: private stablecoins can conceivably be adopted as a means of payment for online purchases, peer-to-peer and micro-payments and a range of potential future.
These tokens are typically pegged to the US dollar and backed by reserve assets, offering faster settlement and lower transaction fees. Stablecoin interest beyond crypto-natives Financial institutions and large corporations are increasingly assessing how stablecoins might improve payment systems.
Agustin Carstens, the general manager at the Bank for International Settlements , said that banks shouldn’t issue their own bitcoin-like tokens because it could undermine global financial stability, as well as monetary policy, according to a report by Bloomberg. A move like this could potentially undermine the whole system, he said.
Brainard said the Fed is currently working on its own 24/7 settlements and payments service, and that it is reviewing around 200 letters it has received on the issue.
Each cryptocurrency operates on its own underlying technology and has unique features that may cater to different usecases. Faster Settlements: Cryptocurrency transactions are typically faster than traditional banking transactions, providing merchants with quicker access to funds.
21), at least some of those central banks are banding together to form a group that will study ways and means of issuing central bank digital currencies (CBDC). between banks) done through CBDC. is joining the CBDC fray. But as reported Tuesday (Jan. Federal Reserve is also absent from the roster.
How can we look to this rapidly growing business for new usecases for instant payments? The issuance and use of a CBDC for cross-border payments could potentially help simplify intermediation chains, increase speed and lower costs. What will this look like in the coming years?
The Federal Reserve is collaborating with seven central banks and the Bank for International Settlements (BIS) to hammer out a framework for digital currency. However, Jon Cunliffe, deputy governor at the Bank of England (BoE) said that he did not think any single approach to a central bank digital currency (CBDC) would end up dominating.
They enable payment verification and fund settlement between merchants and users in both push payment and pull payment modes through smart contracts and zero-knowledge proof technology without relying on centralized key management institutions. PlatON also presented its payment methods QRPAY and ZKPAY.
The central bank of Singapore has announced plans to pilot the issuance and use of wholesale central bank digital currencies (CBDCs) in the coming year. This initiative aims to facilitate real-time cross-border payments and settlements, marking a significant step forward in the future of payments.
The Office of the Comptroller of the Currency (OCC) is putting together “ so-called notices of charges ” against 10 people, although settlements could be extended to some, sources have said. How ‘Contact Us’ And The Kardashians Ignited Afterpay In The US. Central Banks Team On Digital Currency Standards And UseCases.
This is especially true if fees are ultra-high and settlement periods are lengthy. “When it comes to the cross-border needs of small businesses, we know from our Airwallex research that SMBs use numerous financial service providers to manage international money transfers. BIS Aurum) and interoperability solutions (e.g,
Thailand, under the guidance of the Bank of Thailand (BOT) , has been at the forefront of this movement, continuously studying and testing the feasibility of a Retail CBDC since 2018. The project evolved, incorporating enhanced functionalities, cross-border fund transfers, and a Corporate CBDC Pilot Program.
Continuing the second phase of piloting its central bank digital currency (CBDC), Drex, the Central Bank of Brazil (BCB) has selected Brazilian digital bank Banco Inter , Microsoft Brazil , blockchain platform Chainlink , and 7COMm , a decentralised finance-focused firm, to build a trade finance solution.
This marks a critical milestone in the exploration of a Central Bank Digital Currency (CBDC). Moving forward, the Intermediate State phase will expand usecases for the wholesale Rupiah Digital to include broader digital asset applications, as well as Delivery Versus Payment (DvP) mechanisms.
Hence, no Chinese tech company has launched RMB-pegged crypto stablecoins for public use. Instead, the emphasis has been on the Digital Currency Electronic Payment (DCEP) system, Chinas official CBDC. million (US$2.8 In tandem, India is advancing its own CBDC initiative.
A survey conducted this year indicates that 85% of senior payment professionals identified fraud detection as the most significant usecase for AI , aligning with the banks’ focus on implementing generative AI for improved fraud detection and securing payment data. For payment providers, CBDCs present both opportunities and challenges.
Institutions that are not fully prepared risk being locked out of clearing and settlement infrastructure, impacting both operational resilience and client service delivery. by 2027) The UK is preparing to transition its standard securities settlement cycle from T+2 to T+1, with implementation scheduled for 11 October 2027.
Cassie Craddock, Ripple’s Managing Director for Europe, praised Clear Junction’s ability to support all of Ripple’s usecases. The Bank for International Settlements (BIS) is investigating the use of wholesale central bank digital currencies (wCBDCs) to improve instant cross-border payments.
Additionally, the integration is set to simplify transactions, minimise settlement complexities, and increase operational efficiency for small and medium-sized enterprises (SMEs).
We organize all of the trending information in your field so you don't have to. Join 5,000+ users and stay up to date on the latest articles your peers are reading.
You know about us, now we want to get to know you!
Let's personalize your content
Let's get even more personalized
We recognize your account from another site in our network, please click 'Send Email' below to continue with verifying your account and setting a password.
Let's personalize your content