The Bank for International Settlements as well as the central banks of Switzerland, Singapore, and France effectively executed a pilot. These organizations have efficiently conducted the pilot project concerning the wholesale central bank digital currencies’ (wCBDC) trading across borders as a recent report disclosed.
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Proof of concept of Project Mariana utilized hypothetical Swiss franc, Singapore dollar, and euro wCBDCs between imitated financial platforms. The project depended on a joint token standard based on an open blockchain. The respective blockchain offers interoperability and matchless exchange of wholesale CBDCs throughout diverse local settlement and payment systems.
As per a relevant press release, the member central banks are responsible for maintaining the respective settlement and payment systems. Additional jurisdictions are delving into the issuance of wholesale CBDCs. As a result of this, the interbank transactions’ effective settlement takes place. The latest such regions take into account Asia and Europe.
Project Mariana Effectively Shows Its Feasibility in Exchanging Wholesale CBDCs’ Cross-Border Trading
Project Mariana intended to pilot how exchange and foreign settlement might work in a realm where central banking institutions have released a CBDC. Back in June, Banque de France stated that CBDCs could play a significant role in enhancing payments across borders. Project Mariana plays the role of a pioneer in the case of utilizing the unique technology in the case of foreign interbank exchange markets.
The project remained effective in displaying its feasibility in exchanging the wholesale CBDCs’ trading across the borders. While doing so, it utilizes exclusive concepts like automated market makers (or AMM). The AMM operates as an independent trading mechanism. In the report, it was noted that the project even utilized smart contracts to let central banks manage wCBDC. In this respect, they would not require straight control over the underlying platform.
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