Singapore and France have successfully completed cross-border payment tests using multiple central bank digital currencies (m-CBDC). The Monetary Authority of Singapore (MAS) and the Banque de France (BdF) jointly announced the completion of the wholesale cross-border payment and settlement in a press release on the 8th of July.
According to the announcement, the experiment was supported by J.P. Morgan’s Onyx and is the “first m-CBDC experiment that applied automated market making and liquidity management capabilities to reap cross-border payment and settlement efficiencies.”
With the experiment, MAS and BdF were able to achieve interoperability on different kinds of infrastructures in both countries. Also, the test resulted in common CBDCs that gave banks access to the transactions and helped them maintain individual control of the issuance and distribution of their own CBDCs.
During the experiment, the central banks made use of smart contracts to manage the EUR/SGD exchange rate, complying with real-time demand and market transactions. Finally, another outcome of the experiment was a possible reduction in the number of corresponding banks participating in the payment chain for cross-border transactions.
MAS chief fintech officer Sopnendu Mohanty said in a statement:
“Building a multi-currency shared ledger infrastructure allows participants across countries to transact with each other directly in different currencies.”
Image Credits: Pixabay
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