Four Countries Make Pact to Test Cross-Border CBDC Transactions

Source: Markets Insider

Central banks of four countries — Australia, Malaysia, Singapore, and South Africa — have agreed on a joint trial of central bank digital currencies capable of cross-border transactions.

• The partnership includes the Bank of International Settlements Innovation Hub and the Reserve Bank of Australia, Bank Negara Malaysia, Monetary Authority of Singapore, and South African Reserve Bank.
• Under “Project Dunbar,” countries agreed to establish a platform prototype that would be able to cater to multiple CBDCs. 
• The platform prototype is scheduled to debut at the Singapore FinTech Festival in November, and the results of the trials will be published next year.
• The partnership seeks to make transactions between institutions and central banks cheaper and faster.
• BIS Center Head Andre McCormack believes the group will be able to break new ground on CBDCs and provide a base for global payments connectivity.
• Several countries are already in the process of developing their own CBDCs, which would serve as alternatives to cryptocurrencies.