Multilateral central bank digital currency bridge optimizes cross-border payments

2021/6/11 15:57:47
According to the People's Bank of China Digital Currency Research Institute, the People's Bank of China Digital Currency Research Institute has joined the multilateral central bank digital currency bridge research project.

The Hong Kong Monetary Authority, the Central Bank of Thailand, the Central Bank of the United Arab Emirates and the People’s Bank of China’s Digital Currency Research Institute announced the joint launch of the m-CBDC Bridge Research Project on Multilateral Central Bank Digital Currency Bridges, aiming to explore the use of central bank digital currencies in cross-border payments Applications. The project was supported by the Hong Kong Innovation Center of the Bank for International Settlements. The multilateral central bank digital currency bridge research project will further study distributed ledger technology (DLT) through the development of experimental prototypes, realize the all-weather synchronous delivery (PvP) settlement of cross-border transactions of central bank digital currencies, and facilitate the exchange of domestic and foreign currencies in cross-border trade scenarios .

The People’s Bank of China Digital Currency Research Institute believes that the multilateral central bank’s digital currency bridge research project will further build a favorable environment for more central banks in Asia and other regions to jointly study and improve the cross-border payment capabilities of financial infrastructure to solve cross-border payments. Problems such as low efficiency, high cost and low transparency. Based on the research results, all participants will evaluate the feasibility of the application of multilateral central bank digital currency bridges in cross-border capital allocation, international trade settlement and foreign exchange transactions.

Zhong Wei, a professor at the School of Economics and Business Administration of Beijing Normal University and director of the Financial Research Center of Beijing Normal University, said in an interview with a reporter from China Trade News that it is still early to talk about the impact of multilateral central bank digital currency bridge research, but from it Some momentum can be observed in the future.

He introduced to reporters that the People’s Bank of China has launched a digital renminbi and tested it extensively in China. The digital currency of the People’s Bank of China has a different meaning from the digital currency of the Bank for International Settlements. The digital currency of the People’s Bank of China is mainly used for retail sales, while the West is developing digital currencies. Mainly used for To B end, used for institutional payment.

"Based on the current situation in Western countries, the technical conditions for successfully launching digital currencies in the next two to three years are still immature. If China and Europe cooperate in the field of digital currency research and development, the time required for the successful launch of digital currencies in Europe will be shortened and the process will accelerate." Zhong Wei analyzed that the digital currency bridge research cooperation between the Central Bank of China and the central banks of Thailand and the United Arab Emirates can share China's experience and technology in digital currency.

The relationship between the Multilateral Digital Currency Bridge and the Association for Global Banking, Finance and Telecommunications (SWIFT) is also a question mark. Zhong Wei analyzed that SWIFT is a central messaging system, and the digital currency of the People's Bank of China is also centralized, but with the help of part of the blockchain technology. "As far as the China Central Bank's digital currency and multilateral central bank's digital currency bridge are concerned, it does not pose a direct challenge to Swift at present, and it will have an impact in the future. Because SWIFT is a messaging system for institutions, while China's central bank digital currency is mainly a To C model. , for the retail end. "Zhong said," it also depends on the future development of the situation, if the Chinese central bank participation in multilateral bridge promote digital currency will expand the scope of application to the wholesale side, agency side, it will have an impact on Swift. "

in In the rapid development of cross-border e-commerce, cross-border payment has always been a bottleneck. Zhong Wei believes that if a retail multilateral digital currency bridge is built, it will make cross-border e-commerce small and medium-sized merchants’ cross-border payments more convenient and smoother, which will help small and micro businesses and individual merchants, but only if the e-commerce platform is willing to accept it. And use digital currency.