Swiss and French central banks test wholesale CBDC settlements with BIS and private sector

The central banks of Switzerland and France have teamed up with the Bank for International Settlements to test wholesale central bank digital currencies for cross-border transactions. The experiment will be conducted with the help of a private sector consortium led by Accenture. European Central Banks to Collaborate on CBDC Project The Swiss National Bank (SNB), Banque de France and the Bank for International Settlements (BIS) Innovation Center announced this week that they will collaborate on trials testing the use of central bank digital currencies. wholesale inquiries (CBDCs) for cross-border settlements. The tests are supported by a private sector consortium led by Accenture, which also includes Credit Suisse, Natixis, R3, SIX Digital Exchange and UBS. #BISinnovationHub @banquedefrance and Swiss National Bank launch #ProjectJura, a joint experiment for the wholesale of #CBDC @SNB_BNS_en — Bank for International Payments (@BIS_org) 10 June 2021 The project is named "Jura" after the mountain range that borders a long stretch of the France-Swiss border. The experiment will focus on cross-border deals backed by a French digital financial intermediary on two wholesale CBDC and a distributed ledger technology (DLT) platform, SNB said in a press release on Thursday. The test includes the exchange of the financial instrument against a wholesale CBDC in euros through a pay-for-payment (DvP) settlement mechanism, and the exchange of a wholesale CBDC with a wholesale CBDC in Swiss francs through a pay-for-payment (PvP) settlement mechanism. Stating that transactions will be handled between banks in France and Switzerland, SNB said, "Central banks must follow technological developments closely. Jura Project has worked with dozens of central banks around the world to test the effectiveness of wholesale CBDCs in cross-border settlement.

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