The Bank for International Settlements (BIS) announced a list of tokenization projects and CBDC initiatives that could significantly impact the crypto landscape in 2024.
The BIS, an international group of multiple global central banks, has been heading multiple CBDC initiatives for a long time. It recently released its plans for the year ahead, where tokenization projects occupy a major position. Like earlier, the BIS will partner with institutions and start new tokenization projects.
“Tokenization is an important area where we have already launched one project and are planning more initiatives. Safety is another crucial area. We need to find ways to improve the efficiency of services like payments, without ever compromising on security, following the principle set by the G20 countries,” said Cecilia Skingsley, head of the BIS Innovation Hub.
Among the new plans, Project Promissa appeared to be a very important exercise for 2024. The BIS would partner with the World Bank Group and the Swiss National Bank for Project Promissa. Meanwhile, the International Monetary Fund will act as the observer for the project.
Project Promissa will act as an experiment to create a proof of concept for a digital tokenized promissory notes platform. The experiment will use digital ledger technology to simplify managing the notes for different financial institutions. It will be a valuable platform for governments, central banks, and international financial institutions like multilateral banks to have an overview of outstanding notes between each other.
The BIS and its partners aim to complete the project’s testing by 2025. Further, the project will likely introduce other use cases like payments for the promissory notes through tokenized payment systems.
In 2023, the BIS was in the news for its various projects and partnerships. Apart from multiple reports and experiments, its officials were publicly bullish on central bank digital currencies.
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