France, Singapore, and Switzerland Trial with CDBC, Determination of Assets Through Algorithm

Currency digiotal dari bank segera dijicoba secara internasional. (foto: twitter @BIS_org)

JAKARTA - France, Singapore and Switzerland have launched a joint trial of their experimental central bank digital currency (CBDC) in the first cross-regional trial of its kind.

The project, which will run for about six months, will use what are known as automated market makers (AMM) to cross-border exchanges of "hypothetical Swiss francs", euros and Singapore dollar CBDCs.

The AMM protocol is designed to combine pooled liquidity with algorithms to determine prices between two or more digital assets such as currencies.

They are seen as potentially becoming the backbone of the financial market infrastructure needed for digital currencies to be traded between countries.

Cecilia Skinsley, at the central bank's umbrella group Bank for International Settlements, is overseeing the project, which aims to provide a proof of concept by the middle of next year. He said the project marked the first collaboration across the region and he hoped for more to follow.

According to a Reuters report, currently, around 90% of the world's central banks are using, piloting, or seeking CBDCs.

Most don't want to be left behind with the advances of bitcoin and other cryptocurrencies, but grapple with the complexity they bring, wariness about the level of control they can give governments.