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New York Fed, MAS to explore enhancements to cross-border payments

New York Fed, MAS to explore enhancements to cross-border payments

New York Fed Innovation Centre and the Monetary Authority of Singapore (MAS) have announced Project Cedar Phase II x Ubin+, a joint experiment to investigate how wholesale central bank digital currencies (wCBDCs) can improve the efficiency of cross-border wholesale payments involving multiple currencies.

Project Cedar Pase II x Ubin+ will enhance designs for atomic settlement of cross-border cross-currency transactions, leveraging wCBDCs as a settlement asset. The effort, which entails establishing connectivity across multiple heterogeneous simulated currency ledgers, aims to significantly reduce settlement risk, a key pain point in cross-border cross-currency transactions.“Experimentation across the central banking community is vital to leverage the full potential of digital assets and CBDCs in particular” said Michelle Neal, Head of the Markets Group at the New York Fed. “Building off Phase I, the Project Cedar Phase II x Ubin+ collaboration will provide further visibility into the functionality and interoperability of multi-currency ledger networks utilizing their own unique designs.”Leong Sing Chiong, Deputy Managing Director (Markets & Development), MAS, said “The project takes a practical approach and designs for any future wholesale CBDC to be interoperable across networks while maintaining each network’s autonomy.”

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