BIS Tests Tokenized Bank Payments With Visa, JPMorgan, UBS and Deutsche Bank
Tech BIS Tests Tokenized Bank Payments With Visa, JPMorgan, UBS and Deutsche Bank The Bank for International Settlements is preparing to test a blockchain-based system for cross-border payments using real money, marking a significant step in efforts to modernize global banking infrastructure. The Basel-based institution said that Project Agorá, a joint initiative with central banks and private financial firms, will move into a trial phase involving actual transactions. The project was first announced two years ago, with seven central banks and more than 40 regulated institutions. The goal is to improve the way money moves between countries. Todays cross-border payments often rely on several intermediaries, which can make transfers slower, more expensive, and harder to track. Project Agorá is designed to test whether tokenization can reduce those frictions without weakening safeguards against sanctions violations or money laundering. “It will benefit the entire financial system,” said Tim Adams, head of the Institute of International Finance, which helped bring together the private-sector participants. The group includes some of the worlds most influential central banks and financial institutions. The Federal Reserve Bank of New York, the European Central Bank, the Bank of Japan, the Bank of Canada, and the Bank of England are involved. Major private-sector participants include JPMorgan,
