The Bank for International Settlements (BIS) announced that more than 40 financial institutions will participate in its "Project Agorá" project. The project aims to explore how tokenization technology can be applied to cross-border payments. The financial institutions were selected following an open call in May and the project has now entered the design phase, BIS said on Monday.
"Tokenization" refers to the digitization of real-world assets. This emerging technology is being actively explored by many countries and financial institutions in order to maximize its potential. BIS launched "Project Agorá" in April this year, which brings together seven monetary authorities from the United Kingdom, Japan, South Korea, Mexico, Switzerland, the United States and Europe.
BIS said on its website that the project, based on its unified ledger concept, will investigate how tokenized commercial bank deposits can be seamlessly integrated with tokenized wholesale central bank money to form a public-private programmable core financial platform. . BIS emphasizes:
"This major public-private partnership will address multiple structural inefficiencies in the current payments system, particularly in cross-border payments."
In addition, BIS hopes to overcome the challenges in cross-border payments through this project, including the legal, regulatory, and technical requirements of different countries, as well as different operating hours in different places.
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