The Bank for International Settlements (BIS) is to test an automated foreign exchange settlement in wholesale central bank digital currency (CBDC) payments.

The BIS’s Innovation Hubs in the Eurosystem and in Singapore will collaborate with “several central banks”. The project will also aim to explore how distributed ledger technology, CBDC and interlinked payment structures can interact to improve cross-border payments.

In previous BIS projects, the FX price was agreed off-platform.

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