Australia, Malaysia, Singapore and South Africa test joint MNBC system

Australia, Malaysia, Singapore and South Africa join forces on MNBCs

The Reserve Bank of Australia announced the initiative, dubbed ” Project Dunbar “, in a statement last week. The aim of the move is to develop prototypes for common platforms, which will enable international settlements with the various MNBCs developed by the countries in question. This will be developed in collaboration with the Bank for International Settlements (BIS) innovation hub.

The new system will allow the four central banks to operate ” Direct transactions between institutions, reducing costs and increasing speed “. The statement said the project will be implemented with ” multiple partners ” on ” different distributed ledger platforms “. The central banks in question have indeed chosen various architectures for their MNBCs.

Also read – Australian government grants two blockchain startups $4.2 million

Interconnectivity: a major development axis?

The results of this first phase of study will be published during 2022. However, technical prototypes will be presented as early as November 2021 at the FinTech Festival in Singapore.

According to Andrew McCormack, the head of the BIS innovation hub, the aim is to position the Four Central Banks at the forefront of this technological development:

With this group of skilled and passionate partners, we are confident that our work on multiple MNBC Will bring innovation to this new stage of experimentation.[…] and create a foundation for global payments connectivity.

This is indeed a major step. The majority of the world’s central banks are currently working on MNBCs, but the question of interconnection could arise quite soon. This will enable institutions to promote smooth exchanges despite the wide variety of technologies used.

To find out more, read our guide to central bank digital currencies (CBDCs)

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About the author : Marine Debelloir

Australia, Malaysia, Singapore and South Africa test joint MNBC system

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Associate Editor on Cryptoast, I fell into the crypto-currency pot a few years ago. I’m passionate about the innovative technologies that stem from blockchain and I love to dig up the most juicy news to share with you.
All articles by Marine Debelloir.