Landmark International CBDC Test Deemed Success, BIS Says

A project involving multiple Asian central bank digital currencies (CBDCs) has been badged a success, facilitating over $22 million in foreign-exchange transactions, the Bank for International Settlements (BIS) said Tuesday.

The trial, described as the first ever of its kind, used a custom-built distributed-ledger technology platform, is supported by central banks from China, Hong Kong, Thailand and the United Arab Emirates, and was completed Sept. 23, the BIS said in a LinkedIn post.

Multiple jurisdictions around the world are looking at creating a central bank digital currency (CBDC), but they also want to ensure that any dematerialized form of state-backed fiat allows for fast and safe payments across borders, which are today often costly.

A statement issued last November said that Goldman Sachs, HSBC, Société Générale and China’s six biggest state-owned lenders are among the 20 commercial banks involved in the project, known as mBridge.

A detailed report will be released in October, said the BIS, a grouping of the world’s central banks based in Basel, Switzerland.

Read more: mBridge Reveals 15 Use Cases and 22 Heavyweight Participants