BIS to launch stablecoin monitoring project and up focus on CBDC experiments
The Bank for International Settlements (BIS) will heighten focus on experimenting with Central Bank Digital Currencies (CBDCs) this year via its research and development arm and will also launch a new project to monitor stablecoins.
On Feb. 7, the Switzerland-based so-called “bank for central banks” announced its Innovation Hub will "increase its focus" on CBDCs in 2023 to improve payment systems.
The bank added its work schedule for the year ahead also includes “Project Pyxtrial,” which it described as a new experiment being launched by the London branch of the BIS Innovation Hub to enable the “systemic monitoring of stablecoins.”
Pyxtrial will develop a platform to monitor the balance sheets of stablecoins. The bank noted that most central banks lack the tools to “systemically monitor stablecoins and avoid asset-liability mismatches,” before adding:
For its CBDC-related projects, the BIS will focus more on retail CBDCs such as the two-tiered system called Aurum that it piloted in Hong Kong in July 2022.
It stated that CBDCs and payment systems improvements accounted for 15 of the 26 projects that have been active in the last couple of years. It cited increased awareness from central banks as the primary driver.
It also plans to experiment with the distribution of a retail CBDC through an open API ecosystem in a joint experiment with the Bank of England (BOE) dubbed Rosalind.
In 2023, the #BISInnovationHub will increase its focus on improving payments systems and experimenting with #CBDCs; on shaping the future of financial regulation and supervision; and on greening and securing the financial sector. Read more: https://t.co/565s9KK1gn pic.twitter.com/izlF1u0Q22
In September 2022, the BIS concluded a pilot for a platform called
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