Several major banks in Asia have joined forces to create cross-border digital currencies for central banks, according to a joint statement on February 23.
The project is called the Multiple Central Bank Digital Currency Bridge, or m-CBDC, under the Hong Kong Monetary Authority Project, joining the Bank of Thailand, the Central Bank of the United Arab Emirates and the Cryptocurrency Institute of the People’s Bank of China. It forces the creation of a prototype of the CBD using the distributed ledger technology.
Building on the Inthanon-LionRock research project, which started in 2019, in the final phase of cryptocurrency research, the central bank will develop a proof of concept “Facilitating real-time foreign currency payment transactions for multiple suits”. Context and 24/7. The advertisement says.
The stated goal of the project is to eliminate “weaknesses” in implementing cross-border transfers. They include cost effectiveness and the complex rules that apply when transferring money from one country to another.
As formerly Deputy Governor of the Bank of Thailand Matt Subabungsi described:
“The model is a network of cross-border corridors where participants can instantly transfer funds on a peer-to-peer basis using atomic PVP. The project design and most important outcome added new dimensions to the research of central bank communities in cross-border transfers.”
Central banks participating in the project hope to attract more institutions to the scheme and are looking to create a more conducive environment for learning important digital currencies in Asia and beyond.
The rapid growth of cryptocurrencies in recent years has forced many governments and central banks to create digital alternatives to decentralized currencies such as Bitcoin (BTC), Ether (ETH) and many more.
There is no doubt that the government’s failure to control or track the flow of cryptocurrencies will lead to central bank digital currencies becoming popular in the coming years. China is leading the way in creating CBDCs and is already testing the Yuan digital identification equipment range.