IT Pro is supported by its audience. When you purchase through links on our site, we may earn an affiliate commission. Learn more

Australia, Malaysia, Singapore, and South Africa partner on shared digital currency platform

Reserve banks will test the use of central bank digital currencies for international settlements

The reserve banks of Australia, Singapore, Malaysia, and South Africa are set to test the use of central bank digital currencies (CBDCs) for international settlements in the hopes that it will reduce the time and costs for these types of transactions.

The project, named "Dunbar", aims to develop prototype shared platforms for cross-border transactions using multiple CBDCs. The group hopes the platforms will allow financial institutions to issue transactions directly with each other using digital currencies issued by participating central banks, eliminating the need for intermediaries and cutting the time and cost of transactions.

The project, led by the Bank of International Settlement’s Innovation Hub and involving the Reserve Bank of Australia, Bank Negara Malaysia, the Monetary Authority of Singapore, and the South African Reserve Bank, will involve multiple technology partners to develop “technical prototypes” on different distributed ledger technology platforms.

It will also explore different governance and operating designs to allow central banks to share CBDC infrastructures.

"The multi-CBDC shared platform explored under Project Dunbar has the potential to leapfrog the legacy payment arrangements and serve as a foundation for a more efficient international settlement platform,” said assistant governor Fraziali Ismail from Bank Negara Malaysia.

“We hope the project will spur greater public-private collaboration to enable fast and frictionless cross-border payments, combining both the benefits of distributed ledger technology and the efficiency of a common platform.”

The project also aims to explore the “international dimension” of CBDC design and support the efforts of the G20 roadmap for enhancing cross-border payments more broadly.

Its results are expected to be published in early 2022 and the group hopes this will inform the development of future platforms for global and regional settlements. Technical prototypes of the shared platforms will also be demonstrated at the Singapore FinTech Festival in November 2021.

In June, the Hong Kong Monetary Authority (HKMA) announced it was exploring the possibility of launching a centralised digital currency as part of its “Fintech 2025” strategy. Chief executive Eddie Yue revealed it would begin a comprehensive study on e-HKD to understand its use cases, benefits, and related risks.

The HKMA also revealed it would continue to work with the People’s Bank of China in supporting the technical testing of e-CNY, China’s digital yuan, in Hong Kong with the aim of providing a convenient means of cross-boundary payments for domestic and mainland residents.

Featured Resources

Three ways manual coding is killing your business productivity

...and how you can fix it

Free Download

Goodbye broadcasts, hello conversations

Drive conversations across the funnel with the WhatsApp Business Platform

Free Download

Winning with multi-cloud

How to drive a competitive advantage and overcome data integration challenges

Free Download

Talking to a business should feel like messaging a friend

Managing customer conversations at scale with the WhatsApp Business Platform

Free Download

Recommended

Telstra suffers 'sizeable' data breach, mandates two-step security upgrade
data breaches

Telstra suffers 'sizeable' data breach, mandates two-step security upgrade

4 Oct 2022
'Systemic ID problems for 10 million Australians’ after Optus breach, warns minister
cyber attacks

'Systemic ID problems for 10 million Australians’ after Optus breach, warns minister

3 Oct 2022
US lawmakers warn Apple against using Chinese chips in next iPhone
components

US lawmakers warn Apple against using Chinese chips in next iPhone

23 Sep 2022
Australian telco Optus confirms cyber attack involving potential leak of sensitive customer data
cyber attacks

Australian telco Optus confirms cyber attack involving potential leak of sensitive customer data

22 Sep 2022

Most Popular

How to secure your hybrid workforce
Advertisement Feature

How to secure your hybrid workforce

23 Sep 2022
Vodafone UK confirms talks to merge with Three are underway
mergers and acquisitions

Vodafone UK confirms talks to merge with Three are underway

3 Oct 2022
What your hybrid workforce needs from their laptops
Advertisement Feature

What your hybrid workforce needs from their laptops

21 Sep 2022