World Banking Giants Join Project Agora
Over 40 leading private banking institutions have joined Project Agora, a Bank for International Settlements (BIS) initiative to integrate smart contracts to change the current payment flow standard. The objective is to design a system combining public and private money to enhance cross-border settlement processes.
Project Agora Gains Support From Private Banking Giants
Project Agora, an initiative led by the Bank for International Settlements (BIS) with the cooperation of seven different public institutions, has chosen the group of private financial partners that will participate in the design of a system that uses tokenization to enhance the current payments experience, principally across borders.
The project, which includes the participation of the Bank of France, Bank of Japan, Bank of Korea, Bank of Mexico, Swiss National Bank, Bank of England, and the Federal Reserve Bank of New York, has enlisted the help of 40 private institutions that will help in designing, implementing and testing the concept of unified ledger. This combines tokenized assets, public wholesale money, and private tokenized deposits in the same network.
The banks and institutions selected include heavyweights from all regions, like JPMorgan Chase, Santander, BBVA, BNP Paribas, BNY, Deutsche Bank AG, HSBC, Lloyd’s, MUFG, Standard Chartered, Visa, Mastercard, Swift, Sumitomo Mitsui, and others.
The next step is to enter the system’s design phase and establish the role of these private institutions in the network. Ultimately, while BIS acknowledges that Agora is an experimental initiative, the project seeks to build a prototype to test various financial use cases. “The lessons learned during the project may set out a path for a new type of financial market infrastructure tailored to cross-border payments based on new technology,” the institution stresses.
Agora was first announced in April by the BIS, emphasizing the relevance of technologies such as tokenization and smart contracts for modernizing the current settlement system. BIS Chief Agustin Carstens highlighted tokenization’s usefulness for this process before, stating that the real challenge was coordinating the regulatory and legal frameworks for the operation of such a network.
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Source: bitcoin.com NEWS
