Financial authorities in the European Union will convene to deliberate on tokenization and distributed ledger technology for large-value transactions.
In the world of finance, the conversation is increasingly revolving around tokenization, distributed ledger technology (DLT), and central bank money for wholesale settlement. This article dives into the latest developments in these areas, particularly in the context of Project Agora and the upcoming Eurogroup meetings.
The recent Eurosystem wholesale DLT settlement trials saw the participation of three settlement solutions, one of which was the French central bank's wholesale CBDC, or 'exploratory cash tokens'. Notably, the Deutsche Bundesbank's Trigger solution proved the most popular during these trials, a fact that may be attributed to the bank's advanced development of tokenization.
Mr. Hyun Song Shin, economic adviser and head of the monetary and economic department at the Bank for International Settlements (BIS), will participate in the discussions at the Eurogroup meetings. Mr. Shin is also involved in Project Agora, a BIS project that combines tokenization and wholesale CBDC to speed up cross-border payments using correspondent banking.
Project Agora is a collaboration between 41 institutions and seven central banks, including the Banque de France as the EU representative. The project's focus is on streamlining cross-border payments by leveraging tokenization and wholesale CBDC.
The Eurogroup meetings on both Monday and Tuesday will delve deeper into these topics, including the progress of Project Agora and the status of the retail digital euro. The meetings will also discuss the potential benefits and challenges of tokenization, DLT, and central bank money for wholesale settlement.
In a bid to further its exploration and development in these areas, the Deutsche Bundesbank has been actively hiring DLT staff this year. The Banque de France has also been actively involved in these trials, having contributed its wholesale CBDC to the recent Eurosystem wholesale DLT settlement trials.
As the race to stay ahead in the digital currency landscape heats up, it's essential for professionals to stay informed with deeper insights rather than relying on surface-level news. This article continues to discuss deeper insights, exclusive industry analysis, and early access to legislative updates for professional subscribers.
Accompanying this article is Izabela 23, a stock image from Dreamstime.com.
Stay tuned for more updates as the discussions at the Eurogroup meetings unfold.
