The Bank for International Settlements (BIS) and its partner central banks have demonstrated that regulatory compliance can be integrated into cross-border transaction protocols with Project Mandala. The project, which involves the BIS Innovation Centre Singapore, the Reserve Bank of Australia, the Bank of Korea, the Reserve Bank of Malaysia and the Monetary Authority of Singapore (MAS), reached proof of concept on October 28.

The project aims to automate compliance for cross-border transactions and is part of the BIS’s 2024 work programme. It also aligns with the G20’s priorities for improving cross-border payments.

The system uses zero-knowledge proofs to ensure transaction compliance without compromising privacy. Maha El Dimachki, Head of the BIS Innovation Centre Singapore, said they are optimistic about the early results of the project.

Do you think Project Mandala could revolutionise cross-border payments? We welcome your comments.