The Digital Currency Research Institute of the People's Bank of China Joins m-CBDC Bridge Project
[ChainDD report] February 25 (ChainDD) The Hong Kong Monetary Authority, the Central Bank of Thailand, the Central Bank of the United Arab Emirates and the Digital Currency Research Institute of the people's Bank of China announced that they jointly launched the m-CBDC Bridge research project. The project is supported by the Bank for International Settlements (BIS) Hong Kong Innovation Center.
The m-CBDC Bridge will further study the distributed ledger Technology (DLT) through the development of the pilot prototype to implement the all-weather PVP settlement of the cross-border transactions of the central bank's digital currency pairs and facilitate the exchange of local and foreign currencies in the cross-border trade scenario.
Moreover, m-CBDC Bridge will also build a favorable environment for more central banks in Asia and other regions to jointly study and improve the cross-border payment capacity of financial infrastructures in order to solve the problems of low efficiency, high cost and low transparency in cross-border payment.
According to the research results, participants will assess the feasibility of the application of the multilateral central bank digital currency bridge in cross-border fund allocation, international trade settlement and foreign exchange transactions.