In an important development in the world of central bank digital currencies (CBDC), the Bank for International Settlements (BIS) and central banks from France, Singapore and Switzerland have recently successfully completed the Mariana project.
This innovative initiative aims to explore cross-border trading and settlement of wholesale central bank digital currencies (wCBDC) between financial institutions.
The Mariana Project is a major step in the integration of decentralized financial technology (DeFi) into the world of CBDCs and has the potential to revolutionize digital currencies globally.
BIS Successfully Conducts CBDC Test
According to the Crypto Potato report, the collaboration behind the Mariana project brings together the BIS Innovation centers in Switzerland and Singapore, as well as the Eurosystem.
Joining them are leading institutions such as the Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank.
Together, they conducted successful trials involving wCBDC euros, Singapore dollars and Swiss francs.
One of the main lessons from Mariana's project was the exploration of DeFi technology, specifically the concept of Automated Market Maker (AMM).
AMMs enable automated pricing and execution of spot FX transactions, potentially introducing a new era in financial market infrastructure.
The inclusion of DeFi technology addresses the growing interest of financial institutions in efficiently storing, transferring and settling wCBDCs while ensuring central banks maintain oversight.
However, it is important to note that the Mariana project is still in the testing phase. BIS intends to continue investigating the opportunities and challenges associated with CBDCs and related technologies.
This ongoing collaboration with partner central banks will also involve discussions about their intentions to issue wCBDCs or support DeFi solutions.
Director General of Financial Stability and Operations at the Banque de France, Emmanuelle Assouan, emphasized the breakthrough nature of the Mariana project.
“This could be a pioneer for cross-border payment functions in the future,” he said.
The project aims to create a practical solution for the exchange of various CBDCs in a global network, ensuring interoperability with the regional platforms where each CBDC is issued.
Despite the great progress that has been made with the Mariana project, it is important to recognize that tokenization and DeFi technology are still in their infancy.
Further research and development will be required to fully exploit its potential.
The Mariana project is expected to be a key topic of conversation at the upcoming Banque de France conference on October 3, where experts will likely delve into the future of cross-border payments.
The Mariana Project builds on the success of previous efforts.
In the previous year, BIS worked with the central banks of Hong Kong SAR, Thailand, China and the UAE to pilot a cross-border digital currency known as mBridge.
The trial involved approximately 20 banks and facilitated 164 payment and foreign exchange transactions, with settlements exceeding US$22 million directly on the mBridge platform.