Today the Banque de France and Monetary Authority of Singapore (MAS) announced a cross border payment experiment using central bank digital currency. It involved simulating transactions using digital euro (EUR) and singapore dollar (SGD) CBDCs on the same network, referred to as multi-CBDC or m-CBDC. Borrowing from the decentralized finance (DeFi) world, it used automated market-making and liquidity management for the foreign exchange EUR/SGD pair. JP Morgan’s Onyx blockchain unit supported the wholesale CBDC experiment.
“This m-CBDC experiment has broken new ground by decentralizing financial infrastructure, to improve liquidity management and market making services,” said Sopnendu Mohanty, Chief FinTech Officer of MAS.
MAS previously stated that it was working on Project Dunbar, a single network m-CBDC platform with the Bank for International Settlements. In other words, multiple central banks issue a CBDC on the same network.
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