2LT International News

PARIS, France: In the first cross-regional trial of its kind, France, Singapore and Switzerland have launched a joint trial of their experimental central bank digital currencies.

The six-month project will utilize “automated market makers” for the cross-border exchange of “hypothetical” Swiss franc, euro and Singapore dollar digital currencies.

Automated market makers protocols, which combine pooled liquidity with algorithms to determine prices between two or more digitally tokenized assets, such as currencies, could become the foundation of the financial market infrastructure required for digital currencies to be traded between countries.

Representing the Bank for International Settlements, the central bank umbrella group overseeing the project which aims to deliver proof of concept by the middle of next year, Cecilia Skingsley said the collaboration is the first across regions, and she expects more to follow.

Digital currencies are being used, trialled or studied by some 90 percent of the world’s central banks.