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French, Swiss Central Banks Conclude CBDC Payments Test

French, Swiss Central Banks Conclude CBDC Payments Test


The Bank for International Settlements (BIS), the Bank of France (BoF) and the Swiss National Bank (SNB) have concluded the combined study testing the wholesale use of central bank digital currency (CBDC) in international settlements between financial institutions.

Announced on Wednesday, the banks explored settling foreign exchange (FX) transactions in euro and Swiss franc wholesale CBDCs under Project Jura. The French and Swiss central banks issued, transferred and redeemed a tokenized euro-denominated French commercial paper.

Benoît Cœuré, Head of the BIS Innovation Hub, said: “Project Jura confirms that a well-designed wholesale CBDC can play a critical role as a safe and neutral
 
 settlement 
asset for international financial transactions.”

Many private companies, including Accenture, Credit Suisse, Natixis, R3, SIX Digital
 
 Exchange 
and UBS, also participated in the wholesale CBDC testing. The private banks in France and Switzerland explored direct transfers of euro and Swiss franc wholesale CBDCs on a third-party operated single distributed ledger technology platform.

The European participants settled the real-value CBDC transactions on a near-real setting and maintained regulatory requirements.

Testing CBDC in Real-World

Project Jura was first announced in June this year, which is one of the many such CBDC projects led by BIS. The Hong Kong arm of the BIS Innovation Hub is also conducting similar CBDC studies with the central banks of Hong Kong, China, and the UAE.

“As a small open economy, Switzerland requires efficient and robust cross-border payment and settlement arrangements. Project Jura explores how distributed ledger technology can be successfully leveraged to map out how future-proof cross-border settlement between financial institutions could look like,” said Andréa M Maechler, a member of the governing board at the Swiss National Bank.

“Jura demonstrates how wholesale CBDCs can optimize cross-currency and cross-border settlements, which are a key facet of international transactions,” Bank of France Deputy Governor, Sylvie Goulard said.

The Bank for International Settlements (BIS), the Bank of France (BoF) and the Swiss National Bank (SNB) have concluded the combined study testing the wholesale use of central bank digital currency (CBDC) in international settlements between financial institutions.

Announced on Wednesday, the banks explored settling foreign exchange (FX) transactions in euro and Swiss franc wholesale CBDCs under Project Jura. The French and Swiss central banks issued, transferred and redeemed a tokenized euro-denominated French commercial paper.

Benoît Cœuré, Head of the BIS Innovation Hub, said: “Project Jura confirms that a well-designed wholesale CBDC can play a critical role as a safe and neutral
 
 settlement 
asset for international financial transactions.”

Many private companies, including Accenture, Credit Suisse, Natixis, R3, SIX Digital
 
 Exchange 
and UBS, also participated in the wholesale CBDC testing. The private banks in France and Switzerland explored direct transfers of euro and Swiss franc wholesale CBDCs on a third-party operated single distributed ledger technology platform.

The European participants settled the real-value CBDC transactions on a near-real setting and maintained regulatory requirements.

Testing CBDC in Real-World

Project Jura was first announced in June this year, which is one of the many such CBDC projects led by BIS. The Hong Kong arm of the BIS Innovation Hub is also conducting similar CBDC studies with the central banks of Hong Kong, China, and the UAE.

“As a small open economy, Switzerland requires efficient and robust cross-border payment and settlement arrangements. Project Jura explores how distributed ledger technology can be successfully leveraged to map out how future-proof cross-border settlement between financial institutions could look like,” said Andréa M Maechler, a member of the governing board at the Swiss National Bank.

“Jura demonstrates how wholesale CBDCs can optimize cross-currency and cross-border settlements, which are a key facet of international transactions,” Bank of France Deputy Governor, Sylvie Goulard said.



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