Bank for International Settlements begins CBDC tests

During 2020, the Bank for International Settlements (BIS) and the Swiss National Bank (SNB) are cooperatingindirection of implementation of digital currencies.As reported by The Block, a test of a central bank digital currency (CBDC) is planned by the end of 2020. This statement was made by the head of BIS Benoit Quéré at the summit last Sunday in Shanghai.

Based on Kere's words, the BIS and SNB project will be included ina proof-of-concept stage by the end of 2020. In this way, the regulator will lay the foundation for further experimentation with retail CBDC, as well as explore its interaction with existing systems and issues related to compliance.

To conduct full testing,for example, cross-border payments, BIS plans to involve other central banks in cooperation, for example, the Hong Kong Monetary Authority and the Bank of Thailand.

Recall that this month the BIS, together with a group of seven central banks, published a report outlining the key characteristics of a CBDC, as well as the main principles underlying its design.

At the moment, G20 members are working withexperts from the International Monetary Fund (IMF), the World Bank and BIS on standardizing the issuance and application of CBDCs in the traditional banking system.

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