Follow Us @
BIS abandons CBDC project claiming that currency does not help avoid international sanctions
-Trending Marketing news, content marketing, latest Ways to rank your website, marketing discoveries, Local SEO, seo and social media marketing services. enjoy your stay on our website.
The Bank for International Settlements (BIS) announced the abandonment of the mBridge project, an initiative launched in 2021 to connect financial systems across countries through a central bank digital currency (CBDC).
According to the entity, the project, which aimed to create a parallel network of international transactions, ended up being seen as a potential facilitator for BRICS countries to circumvent economic sanctions. This aspect led BIS to reconsider its participation and end its involvement in mBridge.
BIS general manager Agustín Carstens highlighted the reasons for the decision during a recent event in Madrid. As Carstens stated, the mBridge cannot serve the BRICS. This is because the project does not help to avoid sanctions imposed by the West.
“Nothing we do should become a conduit for violating sanctions,” Carstens said. The statement highlights the BIS’s contrary position in supporting initiatives that could destabilize the established global financial system.
BIS gives up on CBDC
mBridge sought to enable countries such as the United Arab Emirates, China, Hong Kong, Thailand and Saudi Arabia to carry out cross-border financial transactions in an agile and secure manner, without resorting to the traditional banking system. The initiative was under the leadership of the BIS Innovation Hub. The entity sought to create a digital central banking solution capable of enabling integration between different economies.
Despite the advanced stage of the project, which has already reached the Minimum Viable Product (MVP) level, Carstens made it clear that the entity will not participate in a system that can circumvent sanctions.
With MVP, the countries involved already have validator nodes on the mBridge network, capable of verifying and completing financial transactions. Recently, the United Arab Emirates carried out the first successful test of the project. The country made a payment of 13.6 million digital dollars directly to China, using the digital dirham.
Even though BIS has decided to withdraw, participating countries are free to continue with mBridge. Carstens reaffirmed that, although the technology has the potential to simplify international transactions, the BIS’s involvement in a project that could facilitate trade between the BRICS, bypassing the conventional financial system, would not be sustainable.
The BIS made the decision after considerations about the risks of supporting an alternative payments system that could serve countries under sanctions, such as Russia.
BIS abandons CBDC project claiming that currency does not help avoid international sanctions
Follow TODAYSGIST on Google News and receive alerts for the main trending SEO news, Ai news, latest Ways to rank your website, marketing discoveries, Local SEO and lots more!
BIS abandons CBDC project claiming that currency does not help avoid international sanctions
SHARE POST AND EARN REWARDS:
Did you like this post?!!! Join our Audience reward campaign and make money reading articles, shares, likes and comment >> Join reward Program
FIRST TIME REACTIONS:
BIS abandons CBDC project claiming that currency does not help avoid international sanctions
Be the first to leave us a comment, down the comment section. click allow to follow this topic and get firsthand daily updates.
JOIN US ON OUR SOCIAL MEDIA: << FACEBOOK >> | << WHATSAPP >> | << TELEGRAM >> | << TWITTER >
BIS abandons CBDC project claiming that currency does not help avoid international sanctions
