The BIS Innovation Hub has revealed plans for a blockchain-based tokenization project and an expansion of its central bank digital currency (CBDC) privacy testing initiative.
In its 2024 work program, BIS announced six new projects covering areas such as cybersecurity, financial crime prevention, CBDCs, and green finance.
Project Promissa, a collaboration with the Swiss National Bank and the World Bank, aims to develop a proof-of-concept platform for digital tokenized promissory notes using distributed ledger technology, focusing on enhancing transparency and management.
The BIS Innovation Hub is also continuing Project Aurum in Hong Kong, exploring privacy in retail CBDC payments, and researching two types of tokens within the interbank system.
In July, BIS highlighted cryptocurrency challenges as a monetary instrument due to “inherent structural flaws.” In October, global banking regulators, including BIS, proposed standardized disclosure for major banks dealing with crypto assets, set for enforcement in January 2025 to enhance transparency.
Amid these developments, the financial landscape saw continued growth in complex instruments. BIS reported a November surge in over-the-counter (OTC) derivatives volumes driven by interest rate fluctuations and LIBOR phase-out. Notably, OTC interest rate derivatives rose by 17%, and FX derivatives also grew.
In November, BIS launched a pioneering data portal, improving accessibility to international banking statistics and financial indicators.
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