Key Takeaways:
- Project Agorá unites seven major monetary authorities to explore tokenization for cross-border payments.
- The project integrates tokenized commercial bank deposits with wholesale central bank money to improve global transactions.
- A unified ledger is being developed to streamline payment systems across both private and public sectors.
The Bank for International Settlements (BIS) launched Project Agorá in April, uniting seven major monetary authorities from the U.K., Japan, South Korea, Mexico, Switzerland, the U.S., and Europe.
Over 40 financial institutions have joined the initiative, which explores how tokenization can improve wholesale cross-border payments.
Project Agorá is a groundbreaking initiative by the BIS, 7 central banks and over 40 private sector financial companies convened by @IFF. It has the potential to shape the future of international payments and create new ways for businesses to transact https://t.co/kWpyTPOJz9 pic.twitter.com/3kjWPglZ1q
— Bank for International Settlements (@BIS_org) September 16, 2024
The project focuses on integrating tokenized commercial bank deposits with wholesale central bank money to streamline global transactions.
Selected participants will now collaborate in the project’s design phase.
Tokenization, which digitizes real-world assets, is being explored globally to unlock new opportunities in finance.
Project Agorá aims to develop a unified ledger that merges private and public sectors in a programmable financial platform.
BIS noted that this partnership addresses inefficiencies in current payment systems, especially in cross-border transactions, while tackling challenges such as differing legal, regulatory, and technical frameworks across regions.
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