BusinessPostCorner.com
No Result
View All Result
Monday, June 30, 2025
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
BusinessPostCorner.com
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources
No Result
View All Result
BusinessPostCorner.com
No Result
View All Result

Global Financial System Could Benefit from Unified CBDCs, BIS Says

June 21, 2023
in Crypto News
Reading Time: 3 mins read
A A
0
Global Financial System Could Benefit from Unified CBDCs, BIS Says
ShareShareShareShareShare
BIS building in Basel, Switzerland. Source: Adobe/doganmesut

A unified electronic ledger, combining central bank digital currencies (CBDCs) and other tokenized assets, has the potential to enhance the global financial system, according to a report by the Bank for International Settlements (BIS).

The proposed ledger would leverage automated smart contracts that exist on blockchains like Ethereum to facilitate seamless transactions.

The current financial system relies on third-party messaging systems, such as SWIFT, leading to delays and incomplete views of actions.

The unified ledger, as envisioned by the BIS, would eliminate these inefficiencies, providing a single platform for central bank money, commercial money, and various assets—all tokenized and interacting.

The concept of combining smart contracts with tokenization was explained by the BIS in a video posted on Twitter:

Tokenization could streamline securities settlement

In a press release, BIS’s Head of Research, Hyun Song Shin, emphasized that a unified ledger would open up new possibilities by streamlining securities settlement processes and enabling tokenized deposits with built-in regulatory checks.

This could reduce trade finance costs, in particular for smaller companies, Shin explained.

The head researcher elaborated on the same concept in another video shared by the BIS, saying:

“Currently, money and other claims reside in separate databases that are connected through third-party messaging systems, meaning that transactions need to be reconciled separately before being settled with finality.”

He added that “tokenization makes all this one seamless operation.”

Notably, the implementation of a unified ledger for cross-border payments would require significant policy harmonization among jurisdictions.

The BIS report also highlighted the need for collaboration between central banks and the private sector to drive this project forward, with the private sector handling most customer-facing activities.

Moving forward, the BIS expects central banks and the private sector to come together under a public policy mandate to advance this initiative.

Shin emphasized the importance of collaboration between the official and private sectors, and indicated that there are ongoing discussions on this topic.

Follows report on money programmability

The new BIS report on unified CBDC systems came shortly after the same organization, in cooperation with the Bank of England (BoE), published the results of their “Project Rosalind” CBDC trial.

The trial examined over 30 different use cases that a well-designed CBDC could have, and highlighted the potential CBDCs have for introducing “programmability” to money.

“We believe that Rosalind can make a significant contribution to how organizations across the globe are thinking about and engaging with the design of retail CBDC systems,” Francesca Hopwood Road, Head of the BIS Innovation Hub London Centre, said about the joint CBDC trial with the BoE.


Credit: Source link

ShareTweetSendPinShare
Previous Post

Europe’s defence sector must collaborate more, says Saab boss

Next Post

Elon Musk declares ‘cisgender’ to be a slur on Twitter

Next Post
Elon Musk declares ‘cisgender’ to be a slur on Twitter

Elon Musk declares ‘cisgender’ to be a slur on Twitter

What is the Strait of Hormuz and why does it matter?

What is the Strait of Hormuz and why does it matter?

June 23, 2025
UK launches biggest financial advice shake-up in more than a decade

UK launches biggest financial advice shake-up in more than a decade

June 29, 2025
Korean Stocks Soar on President Lee’s Won-Backed Crypto Pledge, Kakao Pay Doubles

Korean Stocks Soar on President Lee’s Won-Backed Crypto Pledge, Kakao Pay Doubles

June 29, 2025
Government jobs support plans ‘a mess’, DWP officials tell BBC

Government jobs support plans ‘a mess’, DWP officials tell BBC

June 27, 2025
US multinationals on track for minimum tax reprieve after G7 deal

US multinationals on track for minimum tax reprieve after G7 deal

June 28, 2025
ETF Giant KraneShares Aims to Launch Coinbase 50 ETF, Tracking Top Digital Assets

ETF Giant KraneShares Aims to Launch Coinbase 50 ETF, Tracking Top Digital Assets

June 28, 2025
BusinessPostCorner.com

BusinessPostCorner.com is an online news portal that aims to share the latest news about following topics: Accounting, Tax, Business, Finance, Crypto, Management, Human resources and Marketing. Feel free to get in touch with us!

Recent News

U.S. trade talks resume after Canada rescinds tech tax in ‘clear victory’ for Trump

U.S. trade talks resume after Canada rescinds tech tax in ‘clear victory’ for Trump

June 30, 2025
Welfare concessions to be set out before key vote

Welfare concessions to be set out before key vote

June 30, 2025

Our Newsletter!

Loading
  • Contact Us
  • Privacy Policy
  • Terms of Use
  • DMCA

© 2023 businesspostcorner.com - All Rights Reserved!

No Result
View All Result
  • Home
  • Business
  • Finance
  • Accounting
  • Tax
  • Management
  • Marketing
  • Crypto News
  • Human Resources

© 2023 businesspostcorner.com - All Rights Reserved!