NEW YORK - The Federal Reserve Bank of New York's New York Innovation Center (NYIC) has joined an international research collaboration named Project Agorá, focusing on the tokenization of central bank and commercial bank money to potentially enhance wholesale cross-border payments. The Bank for International Settlements (BIS) Innovation Hub is leading the initiative, which includes seven central banks.
Project Agorá aims to address the inefficiencies in the current structure of international payments, such as legal and technical discrepancies, differing operating hours, and financial integrity controls. By exploring a shared programmable ledger for central bank money and commercial bank deposits, the project seeks to increase the speed and transparency of transactions while reducing costs and risks associated with cross-border payments.
Per von Zelowitz, Director of the NYIC, expressed enthusiasm about the collaboration with other central banks and the center's ongoing contribution to the public discourse on the future of money and payments. The NYIC's role in the project is strictly limited to research and experimentation.
The central banks participating alongside the New York Fed include the Bank of England, Bank of France, Bank of Japan, Bank of Korea, Bank of Mexico, and the Swiss National Bank. The BIS will also invite financial institutions to contribute to the project and plans to release public reports detailing the findings of Project Agorá.
Established in 2021 in partnership with the BIS Innovation Hub, the NYIC operates at the intersection of finance, technology, and innovation. Its mission is to generate insights into central bank-related opportunities through research and technical experimentation, aiming to advance central banking and improve the global financial system.
The information for this article is based on a press release statement.
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