BIS Unveils 2024 CBDC Plans, Project ‘Aurum’ Takes a Step Forward
The Bank of International Settlements (BIS) has revealed that its central bank digital currency (CBDC) project is entering a new phase this year. Known as ‘Aurum,’ the CBDC project will focus on exploring the privacy of payments in retail CBDCs. BIS announced this as part of its Innovation Hub work programme for 2024.
The aim of Project Aurum is to advance central banks’ understanding of privacy in the design of CBDC systems. To achieve this, BIS plans to collaborate with academia and privacy regulators. Cecilia Skingsley, head of the BIS Innovation Hub, emphasized the importance of understanding how new technologies impact central banks’ core work.
Project Aurum is a joint effort between the BIS Innovation Hub Hong Kong Centre, the Hong Kong Monetary Authority, and the Hong Kong Applied Science and Technology Research Institute. It was first announced in October and involves a two-tier retail CBDC system, including intermediated CBDC and stablecoins backed by CBDC in the interbank system.
In addition to the Aurum CBDC initiative, BIS has also outlined plans to work on advanced data analytics and tokenization. Skingsley mentioned that the BIS Innovation Hub is exploring tokenization of financial instruments and has already launched one project in this area.
Another project announced by BIS is ‘Promissa,’ which aims to build a proof-of-concept platform for digital tokenized promissory notes. The International Monetary Fund (IMF) will oversee the project developments as an observer.
BIS is also working on Project mBridge, which involves creating a multi-CBDC common platform for wholesale cross-border payments. In September, BIS and central banks of France, Singapore, and Switzerland successfully tested cross-border settlement for wholesale CBDCs under Project Mariana.
Overall, BIS is actively prioritizing the development and exploration of CBDCs and related technologies. These initiatives aim to enhance central banks’ understanding and implementation of digital currencies in the evolving financial landscape.