While the experiment was limited to two central banks, the design of the m-CBDC network enables it to be scaled up to support the participation of multiple centrals banks and commercial banks located in different jurisdictions. This offers great potential to simplify integration and significantly improve cost efficiencies, since a single connection to a common platform is used in place of multiple connections needed in the current correspondent banking model. This experiment is also one of the last of BdF’s wholesale experiment programme, which will be achieved by fall 2021.

In a statement, Valérie Fasquelle, Director of Infrastructures, Innovation and Payments – Banque de France declared, “By experimenting the circulation of EUR CBDC in a shared corridor network, the MAS and the Banque de France tested the possibility to provide a link with other CBDCs all over the world. It is an opportunity to construct arrangements for multiple CBDCs models, improving cross-border payments and increasing harmonisation of post trade procedures.”

Sopnendu Mohanty, Chief FinTech Officer of MAS said, “Building a multi-currency shared ledger infrastructure allows participants across countries to transact with each other directly in different currencies. This m-CBDC experiment has broken new ground by decentralizing financial infrastructure, to improve liquidity management and market making services. It charts the path for scalable CBDC networks where central banks and commercial banks can work together to achieve the vision of cheaper, safer and more efficient infrastructure for cross border payments.”

“Participating in simulations which explore the technology and operational aspects of multi-currency corridor networks will be a foundational component of global payment infrastructure to come. This is a natural continuation of our work in the area of central bank and commercial bank digital currencies,” said Umar Farooq, CEO, Onyx by J.P. Morgan.