BIS announces 2024 plans for CBDC, Project ‘Aurum’ progresses.

Named 'Aurum,' the project for a Central Bank Digital Currency (CBDC) will investigate payment confidentiality in retail CBDCs as part of its Innovation Hub work program.

Sujha Sundararajan
Last updated: January 23, 2024 21:42 EST
| 1 min read

The Bank of International Settlements (BIS) has just announced that its central bank digital currency (CBDC) project, called ‘Aurum,’ is entering a new phase this year. In a bid to explore the privacy of payments in retail CBDCs, BIS has listed Aurum as one of its first six projects for 2024 under the Innovation Hub work programme.

The goal of project Aurum is to improve central banks’ understanding of privacy in the design of CBDC systems by leveraging expertise from academia and privacy regulators. Cecilia Skingsley, the head of the BIS Innovation Hub, emphasized the need for central banks to understand the impact of new technologies on their core work as the financial industry adopts them.

Project Aurum is a collaboration between the BIS Innovation Hub Hong Kong Centre, the Hong Kong Monetary Authority, and the Hong Kong Applied Science and Technology Research Institute. It was first announced in October and involves the creation of a two-tier retail CBDC system, consisting of intermediated CBDC and stablecoins backed by CBDC in the interbank system.

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But that’s not all. BIS also has plans to delve into advanced data analytics and tokenization. Speaking at a BIS seminar, Skingsley highlighted the importance of tokenization and announced that the Innovation Hub is planning more initiatives in this area.

In fact, BIS recently announced another project called ‘Promissa,’ which aims to develop a proof-of-concept platform for digital tokenized promissory notes. The International Monetary Fund (IMF) will act as an observer to oversee the project developments.

Apart from the Aurum CBDC initiative, BIS is also working on Project mBridge, a multi-CBDC common platform for wholesale cross-border payments. In collaboration with central banks from France, Singapore, and Switzerland, BIS successfully tested cross-border settlement for wholesale-CBDCs in a project called Mariana. This testing demonstrated the seamless transfer of wCBDCs (wholesale CBDCs) across different networks.

Overall, BIS is making significant strides in exploring the potential of blockchain technology and digital assets. With projects like Aurum and mBridge, they aim to shape the future of digital financial systems while maintaining privacy and security.

Q&A: Q: What is the purpose of BIS’s CBDC project Aurum? A: The purpose of project Aurum is to explore the privacy of payments in retail CBDCs and enhance central banks’ understanding of privacy in the design of CBDC systems.

Q: Who are the collaborators in project Aurum? A: Project Aurum is a collaboration between the BIS Innovation Hub Hong Kong Centre, the Hong Kong Monetary Authority, and the Hong Kong Applied Science and Technology Research Institute.

Q: What other projects is BIS working on? A: BIS is also focused on advanced data analytics, tokenization, and wholesale cross-border payments through projects like Promissa and mBridge.

Q: What is the significance of tokenization in the financial industry? A: Tokenization allows for the representation of real-world assets as digital tokens, increasing liquidity, accessibility, and efficiency in financial markets.

Q: How does BIS ensure the security of cross-border settlement in wholesale-CBDCs? A: Through successful testing in project Mariana, BIS and collaborating central banks have demonstrated the seamless transfer of wholesale CBDCs across different networks, ensuring secure cross-border settlement.

References: 1. BIS announces CBDC tokenization projects for 2024 2. The big list of retail revolution: Cryptocurrency and retailers embracing digital payments 3. Memeinators presale officially hits $2.5M, invest in the project now! 4. Follow Us on Google News

Is the financial world ready for the privacy-enhanced Aurum CBDC? BIS seems to think so. With their continued efforts in blockchain technology and digital assets, they are reshaping the landscape of digital financial systems. 🌍💸

Let us know your thoughts! Have you been following the developments in the CBDC space? Share this article with your friends and dive into the future of finance. 😎✨

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