The Bank for International Settlements (BIS) Innovation Center recently unveiled its ambitious work program for the coming year, highlighting six new projects that delve into critical areas such as cybersecurity, financial crime, central bank digital currencies (CBDC), and green finance. This proactive approach reflects the BIS’s commitment to staying at the forefront of technological advancements in the crypto and NFT field, as well as the wider crypto industry.
One of the flagship projects, Project Aurum, is set to enter its second phase of testing in 2024. Co-led by BIS and the Hong Kong Monetary Authority (HKMA), this initiative will focus on exploring the privacy implications of retail payments with CBDC. The HKMA has already made significant strides in this area, having implemented a wholesale interbank system, an e-wallet, and a retail CBDC prototype as part of the Aurum project.
Another noteworthy endeavor is Promissa, a collaborative effort involving BIS, the Swiss National Bank, and the World Bank. This project aims to develop a proof of concept (PoC) platform for digital tokenized notes, a significant move considering that most promissory notes are still issued in paper form. The goal is to complete the PoC by early 2025, marking a pivotal step towards modernizing this traditional financial instrument.
In addition to these initiatives, the BIS will continue its work on the Mandala project, which seeks to automate compliance procedures for cross-border payments. The organization is also actively involved in Pyxtrail, a project focused on tracking asset-backed stablecoin balances, and Project Cambridge, which is experimenting with a multi-CBDC platform for facilitating cross-border payments.
In a notable address in November 2023, BIS General Manager Agustin Carstens emphasized the growing importance of digital innovations for central banks and underscored the pivotal role of CBDCs in this evolving landscape. This further underscores the urgency and significance of the BIS’s groundbreaking work in this area, solidifying its position as a key player in shaping the future of the crypto and NFT field and the broader crypto industry.
