Bank for International Settlements: Tokenization may significantly enhance the efficiency and security of cross-border payments
According to CoinDesk, the latest research from Project Agorá, led by the Bank for International Settlements (BIS), shows that tokenization technology is expected to significantly improve settlement speed and reconciliation efficiency in cross-border payments, while reducing transaction failures and operational risks.
The project involves BIS collaborating with seven central banks and over 40 financial institutions, including the New York Fed, Bank of England, Bank of Japan, and Swiss National Bank. The research suggests that tokenizing central bank reserves and commercial bank deposits can support "atomic settlement" across currencies and jurisdictions, allowing transactions to "either complete simultaneously or fail simultaneously," thereby reducing the credit and execution risks commonly associated with cross-border payments.
Currently, Project Agorá has completed the simulation testing phase and plans to enter the "real-value" trading testing phase to explore on-chain settlement applications for certain currencies and institutions in a real funds environment.
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