Cross-Border CBDC Payments Are 'Viable,' Says Report From Central Banks of Australia, Malaysia, Singapore and South Africa

Cross-border payments using digital currencies might be coming closer to reality as central banks in Australia, South Africa, Singapore and Malaysia said in a report Tuesday their prototype platform for settling state-backed virtual assets was "technically viable."

“Project Dunbar” is seeking to cut out financial intermediaries and reduce time and cost when paying overseas – making settlement as easy as domestic transactions.
The prototype, kicked off in September, is still stuck on questions of regulation and governance as well as who should be given direct access to the platform.
The plans would mean commercial banks can pay each other directly in another country’s virtual currency.
It’s the latest in a series of projects convened by the Bank for International Settlements, which has also explored using tokenized assets for securities trading in Switzerland, and environmentally friendly green bonds in Hong Kong.
Head of the BIS Singapore Innovation Hub Andrew McCormack said in a media statement the project was “laying the foundation for the development of future global and regional platforms.”

DISCLOSURE

Please note that our privacy policy, terms of use, cookies, and do not sell my personal information has been updated.

The leader in news and information on cryptocurrency, digital assets and the future of money, CoinDesk is a media outlet that strives for the highest journalistic standards and abides by a strict set of editorial policies. CoinDesk is an independent operating subsidiary of Digital Currency Group, which invests in cryptocurrencies and blockchain startups. As part of their compensation, certain CoinDesk employees, including editorial employees, may receive exposure to DCG equity in the form of stock appreciation rights, which vest over a multi-year period. CoinDesk journalists are not allowed to purchase stock outright in DCG.

Jack Schickler

Jack Schickler is a CoinDesk reporter focused on crypto regulations, based in Brussels, Belgium. He doesn’t own any crypto.

Follow @jackschickler on Twitter

Learn more about Consensus 2024, CoinDesk’s longest-running and most influential event that brings together all sides of crypto, blockchain and Web3. Head to consensus.coindesk.com to register and buy your pass now.