The Bank of International Settlements and several central banks have created prototypes for a common digital currency system that enhances cross-border remittances.
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Project Dunbar is expected to allow financial firms to use CBDC to settle transactions among themselves without counterparties.
The pilot phase will reportedly usher in a new stage of assessing the regulatory frameworks in the various jurisdictions and creating a committee to advance the project. The technical development and testing at a bigger industry scale will be the next level.
The head of BIS Innovation Hub Center, Andrew McCormack, notes that a unified platform provides an efficient mode of payment system connectivity despite the challenges in building them.
The announcement comes amid new global payment solutions driven by companies from China and US tech firms like Facebook.