A new collaboration between the Federal Reserve Bank of New York’s New York Innovation Center (NYIC) and the Monetary Authority of Singapore (MAS) has been confirmed to be targeted toward research into wholesale Central Bank Digital Currencies (wCBDCs).
This joint experiment seeks to assess the possibilities and the use cases of wCBDCs as payment for cross-border transactions and in this case, with the use of multiple currencies (cross-border cross-currency transactions).
Ultimately, the project aims to mitigate settlement risk which has been a problem in cross-border payments.
The experiment which has been dubbed ‘Project Cedar Phase II x Ubin+’ is in different phases which will unfold gradually. It will look into the introduction of wCBDCs in enhanced designs for atomic settlements of these cross-border cross-currency transactions. The interoperability of the wCBDC across several networks while maintaining autonomy is…
