MUMBAI: RBI has said that the central bank’s digital currencies could be used for cross-border payments. This can be done using a shared platform developed under the Bank for International Settlements (BIS) led Project Dunbar.
RBI deputy governor Michael Patra raised the issue of using CBDC for cross-border transactions in his speech at the South East Asian Central Banks governor’s conference in Mumbai last week. In his speech, Patra pointed out that besides India, a dozen Asian central banks were either conducting trials, exploring potential or advancing their CBDC projects at various stages of development.
The central banks include Bank Indonesia, the Central Bank of Malaysia, and the Monetary Authority of Singapore, which are collaborating on Project Dunbar. Bangko Sentral ng Pilipinas in the Philippines has announced trials of its digital currency under Project Agila, while Singapore is pursuing Project Ubin to address industry challenges, said Patra.
Central banks in Sri Lanka, Thailand, South Korea, Cambodia, Hong Kong, India, Myanmar, Lao PDR, Nepal, and Vietnam are also involved in various stages of CBDC research, pilots, or projects aimed at exploring the potential and interoperability of digital currencies within their respective financial ecosystems.
“The BIS-led Project Dunbar has developed two prototypes for a shared platform that could enable international settlements using digital currencies issued by multiple central banks,” said Patra.
