In its exploration of blockchain technology, the Bank for International Settlements (BIS), along with the “Eurosystem” – central banks of France, Singapore, and Switzerland will be launching a new project called “Project Mariana.”
According to the press release, the project would use decentralized finance (DeFi) protocols to automate foreign exchange markets and settlement while also improving cross-border payments between the Swiss franc, euro, and Singapore dollar wholesale central bank digital currencies, or CBDCs.
The project is built mainly with the applications used in the DeFi sectors, such as smart contracts and automated market maker protocols (AMMs). Project Mariana merges pooled liquidity with innovative algorithms to dictate the prices between two or more tokenized assets to aid the cross-border exchange of CBDCs.
Aside from Project Mariana being used as DeFi implementation, the centralized financial institution also…
