July 23, 2024
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Australia, Malaysia, Singapore, and South Africa launch CBDC pilot collaboratively

The joint endeavour will provide a prototype of DLT shared platforms. Therefore, to allow institutions to settle digital transactions across borders utilizing central banks.

Australia, Singapore, Malaysia and South Africa Central Banks launches a collaborative endeavour. The endeavour is to experiment with digital currencies by international settlements (CBDCs).

Project Dunbar

The project, Project Dunbar, provides a common platform that allows direct transfers between digital currencies. Various central banks issue these digital currencies between institutions. In addition to helping the G20 plan enhance cross-border payments, the pilot’s outcomes will also inform the “creation of global and regional platforms.”

The Dunbar Project will cooperate with the Innovation Hub of its Singapore Centre, the Bank for International Settlements (BIS). The project will include several partners developing various DLT platforms. Additionally, investigating different architectures to allow central banks to share CBDC infrastructure.

The Joint Announcement

A joint announcement highlights efficiency savings concerning DLT payments, which state:

“These multi-CBDC platforms will allow financial institutions to transact directly with each other in the digital currencies issued by participating central banks. Therefore, eliminating the need for intermediaries and cutting the time and cost of transactions.”

Michele Bullock, the Assistant Governor of the Reserve Bank (RBA), says, “enhancing cross-border payments has become a priority for the international regulatory community,” and further adding that RBA is “very focused” in its domestic policy efforts.

“Project Dunbar brings together central banks with years of experience and unique perspectives in CBDC projects and ecosystem partners at advanced stages of technical development on digital currencies,” stated Andre McCormack, the BIS Innovation Hub Singapore Centre chief. Additionally, he says:

“With this group of capable and passionate partners, we are confident that our work on multi-CBDCs for international settlements will break new ground in this next stage of CBDC experimentation and lay the foundation for global payments connectivity.”

Singapore FinTech Festival

Moreover, RBA has continuously downsized a CBDC domestic demand for immediate digital transfers 24 hours per day. Additionally, citing the accomplishment of the New Payments Platform.

In November 2021, at the Singapore FinTech Festival, Project Dunbar expects to present technical prototypes of joint DLT platforms. In early 2022, the project plans to publish its full findings.