The Bank for International Settlements (BIS) and the central banks of France, Singapore, and Switzerland have concluded a collaborative trial of cross-border trading and settlement for wholesale central bank digital currencies (CBDCs). The report on this initiative, known as Project Mariana, was issued by the Banque de France on September 28.
Project Mariana, developed under the BIS’s auspices by the Banque de France, the Monetary Authority of Singapore, and the Swiss National Bank, has examined the cross-border trading and settlement of hypothetical CBDCs for the euro, Singapore dollar, and Swiss franc among simulated financial institutions. This experiment leveraged decentralized finance (DeFi) technology concepts on a public blockchain.
The core concept involves utilizing a standardized token on a public blockchain, establishing bridges for the smooth transfer of CBDCs between different networks, and implementing a specific decentralized exchange to autonomously execute spot foreign exchange transactions. While the participants view the experiment as successful, they acknowledge the need for further research and experimentation. They also emphasize that Project Mariana is solely experimental and should not be interpreted as an intention to issue CBDCs or endorse DeFi or a specific technological solution by any of the partner central banks.
A day prior to the public release of Project Mariana, Agustín Carstens, the General Manager of the BIS, discussed the importance of clarifying national legal frameworks in countries where central banks lack the authority to issue CBDCs.
The BIS continues to play a key role in advocating for cross-border CBDCs, with multiple pilot tests taking place globally. In September, the central banks of Hong Kong and Israel shared the results of their Project Sela. Additionally, Hong Kong Monetary Authority CEO Eddie Yue announced the expansion of Project mBridge, which already involves the central banks of China, Thailand, and the United Arab Emirates.
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