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.
- 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.”
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.