The central banks of France, Singapore, and Switzerland, along with the Bank for International Settlements (BIS), have announced the accomplishment of Project Mariana, a new central bank digital currency (CBDC) initiative. The project used Decentralised Finance (DeFi) technology on a public blockchain to test cross-border trading and settlement of wholesale central bank digital currencies (wCBDCs) amongst financial institutions.
The trading and settlement of fictitious euro, Singapore dollar, and Swiss franc wCBDCs were successfully validated through a partnership between BIS Innovation Hub centers in Switzerland, Singapore, and the Eurosystem, along with Banque de France, Monetary Authority of Singapore, and Swiss National Bank.
The project investigated key issues like standardizing technical tokens, building bridges to allow for smooth wCBDC transfers, and the Automated Market Maker (AMM) idea for spot FX transaction pricing and execution.
The architecture of Project Mariana strikes a balance between the domestic monitoring requirements of central banks and the desire of financial institutions to effectively hold, transfer, and settle wCBDC across international borders. However, as this is still an experimental phase, BIS plans to further examine the advantages and disadvantages of CBDC and the related technologies with the help of its partners. The initiative, which is viewed as a pillar in enhancing cross-border payments, will probably be discussed at the Banque de France conference on October 3.