The Bank of International Settlements has recently made a very promising announcement for the entire cryptocurrency industry. The Innovation Hub of the Bank of International Settlements has announced that its utmost priority will be performing CBDC research in 2021. The Settlements bank has confirmed that it aims to perform extensive research on the central bank digital currency technology.
The BISIH has confirmed that for the running year, its main goal would be to introduce developments and advancements in the digital currency sector. It will perform extensive research in order to establish the feasibility of cheaper and faster cross-border transactions.
The Innovation Hub has revealed that it will be doing it in the central bank digital currency sector. It will be looking into more options as to how it will keep the CBDC platform safe and secure for the users. The main focus is to ensure that there are no problems or disruptions caused once the platforms go live.
In addition to the above, the platform will also be doing its research on the CBDC distribution infrastructures for retails that will be tiered. Another major point of research will be to find a way that would help the distributed ledgers to issue green bonds to the retail investors in the form of tokens.
The Bank of International Settlements has announced that it will be initiating its research programs through innovation hubs located in three different countries.
The first innovation hub is located in Switzerland, the second innovation is located in Hong Kong, while the third innovation hub is located in Singapore.
The innovation hubs have been established in the countries after collaborating with the local central banks.
The innovation hubs based in three countries will be tasked with three different research protocols. The innovation hub based in Singapore has been tasked to perform its research in order to design and develop an international settlement platform.
With the help of the international settlement platform, the payment firms and regulated banks will be able to settle payments and transactions by using different CBDCs.
The innovation hub based in Hong Kong will be performing its research in order to work on the green bond tokenization project. Additionally, the center will also be working to create a bridge that will help facilitate CBDC transactions for the foreign exchange platform.
In addition to the above, the innovation center will also be working to improvise on the issuance of stablecoin.
On the other hand, the innovation hub based in Switzerland is already far ahead of the other two centers. The center has already worked and completed two proofs-of-concept that it will be using to link existing payment systems.