<\/p>\n
The Bank for International Settlements (BIS) is set to make significant strides in digital currency research, emphasizing central bank digital currencies (CBDCs) and tokenization in its 2024 strategy.<\/p>\n
The BIS Innovation Hub has outlined a comprehensive program<\/a>, featuring six new projects, exploring cybersecurity, financial crime, CBDCs, and green finance. Among the key initiatives are the second phase of Project Aurum and the launch of a blockchain-based tokenization project, Project Promissa.<\/p>\n Project Promissa, a collaborative effort involving BIS, the Swiss National Bank, and the World Bank, aims to usher in a new era for financial instruments. Focusing on digitizing promissory notes, a traditional yet paper-based financial commitment, the project leverages blockchain technology<\/a> to enhance transparency and simplify management.<\/p>\n This proof-of-concept platform is set to revolutionize the handling of promissory notes by digitizing them, aligning with the BIS\u2019s commitment to exploring innovative solutions in the realm of tokenization. The initiative is anticipated to conclude its proof-of-concept phase by early 2025.<\/p>\n Building on the success of its wholesale interbank system and retail CBDC prototype in 2022, Project Aurum, conducted jointly by BIS and the Hong Kong Monetary Authority (HKMA), progresses into its next phase.<\/p>\n The project explores the privacy aspects of retail payments using CBDCs. With the HKMA\u2019s achievements in developing a robust foundation for Aurum, the research now delves deeper into understanding the intricacies of privacy in retail CBDC payments. This initiative aligns with the broader BIS strategy, highlighting the pivotal role of CBDCs in the evolving landscape of digital currencies.<\/p>\n Alongside tokenization and CBDC-focused projects, BIS introduces four other initiatives \u2013 Project Leap, Project Symbiosis, Project Hertha, and Project NGFS Data Directory 2.0 \u2013 addressing cybersecurity, green finance, and financial crime.<\/p>\n These projects underscore BIS\u2019s commitment to a multifaceted approach to shaping the future of financial technology. Additionally, the continued focus on projects like Mandala, Pyxtrail, and Cambridge showcases BIS\u2019s dedication to innovation, automation, and experimentation across diverse aspects of the financial industry.<\/p>\nProject Promissa: revolutionizing financial instruments with tokenization<\/h2>\n
Project Aurum: advancing CBDC privacy in retail payments<\/h2>\n
BIS\u2019 additional initiatives<\/h2>\n