France, Singapore & Switzerland conduct groundbreaking cross-border CBDC trials
As the CBDC landscape continues to evolve, it becomes increasingly important for participating countries to clarify their national legal frameworks, particularly in cases where central banks do not currently have the authority to issue CBDCs.
Highlights
- Project Mariana, developed under the guidance of the BIS, brought together the expertise of the central banks of France, Singapore, and Switzerland
- It leverages bridges to facilitate the seamless transfer of CBDCs between different networks and utilises a specific type of decentralised exchange for the automated settlement of spot foreign exchange transactions
In a significant step towards exploring the potential of central bank digital currencies (CBDCs) on a global scale, the Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland have successfully concluded a joint test of cross-border trading and settlement of wholesale CBDCs. The findings of this pioneering experiment, known as Project Mariana, were released on 28 September by the Banque de France.
Testing the waters with Project Mariana
Project Mariana, developed under the guidance of the BIS, brought together the expertise of the Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank. The objective was to test the cross-border trading and settlement of hypothetical euro, Singapore dollar, and Swiss franc CBDCs using decentralised finance (DeFi) technology concepts on a public blockchain.
The core concept of Project Mariana revolves around a common token standard deployed on a public blockchain. It leverages bridges to facilitate the seamless transfer of CBDCs between different networks and utilises a specific type of decentralised exchange for the automated settlement of spot foreign exchange transactions.
A successful experiment with room for growth
While the participants in Project Mariana view the experiment as successful, they emphasise the need for further research and experimentation. It is crucial to note that this project is purely experimental and does not imply any immediate plans for the partner central banks to issue CBDCs or endorse a specific technological solution.
This development aligns with the Bank for International Settlements' ongoing efforts to promote cross-border CBDCs. Several pilot tests are already underway globally, including Project Sela involving the central banks of Hong Kong and Israel. Additionally, Project mBridge, which now includes central banks from China, Thailand, and the United Arab Emirates, is expanding, marking a crucial step in the exploration of the future of CBDCs on a global scale.
As the CBDC landscape continues to evolve, it becomes increasingly important for participating countries to clarify their national legal frameworks, particularly in cases where central banks do not currently have the authority to issue CBDCs.
The successful completion of Project Mariana underscores the growing interest and collaborative efforts of central banks and international organisations to understand the potential benefits and challenges posed by CBDCs in the modern financial landscape.
