Digital Euro and Swiss Franc trials have heralded a positive result and could bring about important developments.
CBDCs Making Important Progress
The first trial in Europe of cross-border digital currency transactions has been underlined as a success by the central banks of Switzerland and France.
The endeavor to test out digital assets between states has been termed ‘Project Jura,’ after the mountains that lay between the two countries. It marks the latest effort by central banks to trial Central Bank Digital Currency’s (CBDCs) as they attempt to find a response to the relentless progress of the crypto industry.
“Project Jura confirms that a well-designed wholesale CBDC can play a critical role as a safe and neutral settlement asset for international financial transactions,” Benoît Coeuré, head of the Innovation Hub at the Bank for International Settlements, told Reuters on December 8th.
The move marks the public efforts of the traditional banking system to formulate a pathway within which it can utilize blockchain technology. For many, these efforts are starkly behind the relentless innovations being carried out by projects working on-chain.
However, the official report on the trial was not wholly dismissive of the impact of CBDCs on the general market and even the impact this could have on other digital assets and securities.
“wCBDCs could be incorporated into novel settlement arrangements that could change the structure and functioning of capital markets, money markets, and foreign exchange markets,’ the report explained. It continued: “Broadening the use of central bank money through wider access or increased cross‑border settlement could catalyse these changes, as could deeper integration of currencies with other digital assets and securities.”
As progress on the issue continues, there is a clear recognition of the capabilities of crypto assets alluded to in the term ‘integration.’
Efforts will be stepped up by banking institutions worldwide to make sure that they have a firm grasp on the technological possibilities offered. BSC News will be following closely as traditional institutions continue to investigate the digital asset route.
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Source : bsc.news
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