Focus on CBDCs and tokenization
BIS 2024 strategy unveiled: CBCCs and tokenization key focus. Project Promissa to Digitize Promissory Notes Using Blockchain Technology. Project Aurum with HKMA enhances the privacy of CBDC through retail payments.
The Bank for International Settlements (BIS) is set to make significant strides in digital currency research, emphasizing the central bank's digital currencies (CBDCs) and tokens in its 2024 strategy.
The BIS Innovation Center has outlined a comprehensive program featuring six innovative projects, Cyber Security, Financial Crimes, CBCCs and Green Finance. Key initiatives include the second phase of Project Aurum and the launch of Project Promisa, a blockchain-based tokenization project.
Project PROMISA: Transforming financial instruments through tokenization
Project Promisa, a collaborative effort involving the BIS, the Swiss National Bank and the World Bank, aims to usher in a new era of financial instruments. Focusing on digitizing traditional yet paper-based financial commitment promissory notes, the project uses blockchain technology to enhance transparency and simplify administration.
This verification platform is designed to digitally transform promissory notes, digitizing them, aligning with BIS' commitment to innovative solutions in the field of tokenization. The initiative is expected to complete its proof-of-concept phase by early 2025.
Project Aurum: Enhancing CBC's Privacy in Retail Payments
Building on the success of the wholesale interbank system and retail CBCC prototype in 2022, Project Aurum, jointly run by the BIS and the Hong Kong Monetary Authority (HKMA), will move into its next phase.
The project explores the privacy aspects of retail payments using CBDCs. The HKMA's achievements in building a strong foundation for Aurom now delve deeper into the research to understand the complexity of privacy in retail CBCC payments. This initiative aligns with the broader BIS strategy, highlighting the critical role of CBDCs in the advancement of digital currencies.
Additional initiatives of BIS
Alongside the tokenization and CBCC-based projects, BIS is promoting four other initiatives – Project Leap, Project Symbiosis, Project Hertha and Project NGFS Data Directory 2.0 – to address cyber security, green finance and financial crimes.
These projects demonstrate BIS' commitment to a multifaceted approach to shaping the future of financial technology. In addition, the continued focus on projects such as Mandala, Pixtrail and Cambridge demonstrates BIS's commitment to innovation, automation and experimentation in various areas of the financial industry.
