Image source: Singapore News Live

Asian Tech Press (SEP 02) -- According to media reports, the central banks of Australia, Singapore, Malaysia, and South Africa will conduct cross-border payment trials using their central bank digital currencies (CBDCs) to assess their applicability.

Nowadays, governments and central banks worldwide are exploring the use of CBDC, but most initiatives are still in the early stages and focused on domestic applications scenarios. The BIS Innovation Hub, along with Reserve Bank of Australia, Monetary Authority of Singapore, Bank Negara Malaysia and South African Reserve Bank, issued a statement saying the research "Project Dunbar" aims to develop a prototype shared platform for cross-border transactions using CBDCs.

The platform will enable international settlement of legal digital currencies issued by central banks. The system will allow direct inter-institutional transactions of CBDCs, eliminating reliance on intermediaries while saving time and costs. The program will also explore different technical, governance and operational designs.