The Bank for International Settlement (BIS) is working to explore the use case of blockchain technology in international digital fiat money transactions.
BIS (Bank for International Settlements) is a global financial organization, which was established in 1930. This international institution is based in Switzerland and is supported by many central banks. Initially, this organization was created by central banks to regulate the international financial framework.
On 2 November, BIS organization announced that it is working on “Project Mariana”, which will explore the use case of blockchain technology in the international financial system as a leading role.
Project Mariana is considering bringing the use of decentralized finance (DeFi) protocols as a core back-end technology so that foreign exchange markets & settlements can operate automatically without any need for a centralized middleman.
In short, the collaborative use of Defi & blockchain technology will bring ease to the hypothetical transactions between Swiss franc, euro, and Singapore dollar wholesale central bank digital currencies, or CBDCs.
It is worth noting that, BIS is working on that project which will support CBDCs (Central Bank Digital Currencies), which are still not available to use in almost every country, except the case of China & Nigeria like countries.
A report noted that almost all the central banks of the dominating economic level are considering the use of CBDCs as an alternative to physical Cash. Almost all leading central banks are either developing or studying to develop their national CBDC, or sovereign digital fiat currency.
Many crypto proponents hate the concept of CBDCs because CBDCs are a centralized blockchain technology use case, where the Central Bank will still play an important role as a middleman and also can increase or decrease the money supply.