The Bank for International Settlements (BIS) Innovation Hub has outlined its 2024 work program, focusing on six new projects that delve into areas such as cybersecurity, financial crime, central bank digital currencies (CBDCs), and green finance. Notable initiatives include the continuation of CBDC privacy testing in Project Aurum, the launch of a tokenization project named Promissa, and ongoing efforts in projects like Mandala, Pyxtrail, and Cambridge. The BIS remains at the forefront of advocating CBDCs and addressing challenges in the digital asset landscape.
The Bank for International Settlements (BIS) Innovation Hub has unveiled its 2024 work program, featuring six new projects that address critical issues in the financial landscape, including central bank digital currencies (CBDCs), tokenization, and cybersecurity.
CBDC Privacy Testing Continues: Project Aurum, a joint initiative by the BIS and the Hong Kong Monetary Authority (HKMA), will advance to a new phase, focusing on the privacy of retail payments using CBDCs. The project aims to explore innovative solutions to enhance the privacy features of retail CBDC transactions. In 2022, the HKMA completed various components of the Aurum project, including the wholesale interbank system, an e-wallet, and a retail CBDC prototype.
Tokenization Project Promissa: The BIS will launch Project Promissa, a collaboration between the BIS, the Swiss National Bank, and the World Bank. This initiative aims to create a proof-of-concept (PoC) platform for digital tokenized promissory notes. Promissory notes, traditional financial instruments representing an obligation to pay a specific amount at a defined time, are predominantly paper-based. The BIS seeks to explore the digitization of promissory notes through a PoC, with completion expected by early 2025.
Ongoing Projects: The BIS will continue its work on existing projects such as Project Mandala, focusing on automating compliance procedures for cross-border payments; Project Pyxtrail, which monitors the balance sheets of asset-backed stablecoins; and Project Cambridge, experimenting with a multi-CBDC platform for cross-border payments.
Additional Projects: Four other new projects—Project Leap, Project Symbiosis, Project Hertha, and Project NGFS Data Directory 2.0—are part of the BIS's broader initiatives but do not directly intersect with the digital assets industry.
The BIS, recognized for its advocacy of CBDCs and active engagement with challenges in the digital asset landscape, remains committed to driving innovation in central banking and financial technology. The 2024 work program underscores the institution's dedication to exploring advancements in CBDCs, tokenization, and other transformative areas within the financial sector.
(EZRA REGUERRA, COINTELEGRAPH, 2024)