Joint CBDC Trial from Singapore and France

The central banks of Singapore and France are developing a digital currency interoperability system that will support various global CBDCs. The Mali authorities of both countries are seriously investigating the cross-border applications of CBDCs.

📢Cross-Border Payments Will Be Easier
CBDC is the short form of the central bank digital currency. It is a virtual currency based on blockchain technology issued only by central banks . CBDCs can also be a digital token or an electronic record that represents a country's fiat currency in virtual form.

The Monetary Authority of Singapore, called the MAS, and the Bank of France jointly announced the decision on Thursday. They noted their success in completing a full experiment in cross-border settlement and payment using blockchain technology and CBDCs.

📢Blockchain technology is a decentralized ledger distributed to record the earliest known history of a crypto asset. The data design on a blockchain cannot be changed, making it a legitimate and secure agitator for the payment industries.

📢What the Experiment Covers
The completed CBDC experiment was done with digital currency-focused expertise and support from JPMorgan's Onyx division. It is based on privacy-enabled blockchain permission with an emphasis on investment bank's Quorum blockchain infrastructure.

The Monetary Authority of Singapore-MAS and the Bank of France simulated currency and cross-border transactions during the experiment. They did this for the Euro and the dollar-based CBDC in Singapore. The experiment is limited to only 2 central banks, but multiple CBDC network designs are in development. According to the announcement, the experiment now allows multiple commercial banks and central banks located in various locations to participate.

📢The pilot also demonstrated interoperability across various types of cloud infrastructure. It also installs blockchain nodes in public and private cloud infrastructures in Singapore and France.

The experiment promotes automated market making services and adoption of a smart contract to manage liquidity pools for currency pairs Singapore SGD and France EUR.

It also aims to reduce the number of interested bank parties present in the cross-border transaction payment chain, which in turn reduces compliance and legal cost.