In the project on the use of digital central bank currencies (CBDC) in the field of foreign exchange transfers, realized through the Bank for International Settlements (BIS), it was seen that the system had significant shortcomings.
lasting six weeks by BIS 20 of different commercial banks 22 million worth a dollar 160Details of the project involved by paying more than October 26 It was published on the official website of BIS.
According to the information announced, one of the most important problems detected during the test was that the price could not be determined in on-chain transactions. Instead, banks set exchange rates before transactions take place. off the chain determined.
Another striking point in the report was that the banks participating in the project carried out transactions between another bank with which they had bilateral relations before. This was stated as the banks’ desire to “assure themselves” regarding liquidity.
During the six-week project, banks many different payment and exchange methods tried. Transactions with the receiving bank’s CBDC, issuing and amortizing their own CBDCs, or switching from one CBDC to another were among the methods attempted. In the report, transactions other than transactions made by both parties in counter-currency at least in part a correspondent bank had to be included.
In the report, liquidity problems an important disadvantage appeared as In addition, central banks will undertake further pilot projects over the next two years. liquidity management, currency price discovery, legal frameworks, data privacy, decentralized distribution and other uses over to focus said to be planned. Continuation of the project will was also included in the information provided.