Decentralized finance (DeFi) has recently caught the attention of the Bank for International Settlements (BIS), which is studying the integration of digital central bank currencies (MNBC) into this sector. The BIS-led “Project Mariana” aims to explore whether the use of AMMs with MNBCs could help achieve the G20 goals of faster, cheaper and more transparent cross-border payments.
https://cryptoast.fr/feed/
Project Mariana : la BRI étudie l’intégration des MNBC à la finance décentralisée (DeFi)
DeFi to dust off traditional finance?
The Bank for International Settlements (BIS), which acts as both the “bank of central banks” and a forum for them, is working to the integration of central bank digital currencies (MNBC) into the decentralized finance (DeFi) ecosystem.
More precisely, the BIS explores the interest of automated market makers (AMM) via its subsidiary “BIS Innovation Hub” in the context of cross-border exchanges between certain countries using MNBC. This study, conducted under the name Project Mariana », currently brings together the Banque de France, the Monetary Authority of Singapore and the Swiss National Bank.
Pillars of decentralized finance, AMMs make it possible to define the prices of cryptocurrencies on decentralized exchanges (DEX) based on algorithms and liquidity pools instead of traditional order books. A method that would bring its share of advantages to traditional finance, according to the BIS:
“These are smart contracts that use pools of liquidity to exchange digital assets, as opposed to the traditional process of matching buyers and sellers. As DeFi and its applications have the potential to become systemically important parts of the financial system, central banks need to understand their impact. »
The BIS press release also explains that wholesale MNBCs (abbreviated wNMBC here) mixed with AMMs could be part of a new generation of financial market infrastructures, “ thus contributing significantly to the achievement of the G20 objective, i.e. faster, cheaper and more transparent cross-border payments “.
👉 To understand everything – What is a DEX (decentralized exchange) in crypto?
Trade on the leading DEX
⛓️ A platform at the heart of DeFi
How would that work?
According to the architecture of the network currently envisaged – and experimental, the latter would naturally be based on a blockchain system and would support its own automated financial market makers.
Via bridges linking the “native” platforms of each central bank, the international network would thus use the AMMs for the exchange and settlement of wMNBCs. Thus, wMNBCs can be directly exchanged in Swiss francs (CHF), euros (EUR) or Singaporean dollars (SGD).
Schematization of the main components of this ecosystem
According to BIS documentation, each platform will be able to manage itself and agree on its own internal standardsbut still with interoperability offered with each wMNBC contained in the international network.
Currently in testing, Project Mariana should file its first conclusions for mid-2023 to determine to what extent this solution would be advantageous compared to the traditional system.
👉 In the news – SEC: will DEXs be subject to the same rules as centralized platforms?
Discover ZenGo
$10 Bitcoin bonus from $200 deposit 🔥
Source: Press Release
Newsletter 🍞
Receive a summary of crypto news every Monday by email 👌
What you need to know about affiliate links. This page presents assets, products or services relating to investments. Some links in this article are affiliated. This means that if you buy a product or register on a site from this article, our partner pays us a commission. This allows us to continue to offer you original and useful content. There is no impact on you and you can even get a bonus by using our links.
Investments in cryptocurrencies are risky. Cryptoast is not responsible for the quality of the products or services presented on this page and could not be held responsible, directly or indirectly, for any damage or loss caused following the use of a good or service highlighted in this article. Investments related to crypto-assets are risky by nature, readers should do their own research before taking any action and only invest within the limits of their financial capabilities. This article does not constitute investment advice.
AMF recommendations. There is no guaranteed high return, a product with high return potential involves high risk. This risk-taking must be in line with your project, your investment horizon and your ability to lose part of this savings. Do not invest if you are not ready to lose all or part of your capital.
To go further, read our Financial Situation, Media Transparency and Legal Notices pages.
Passionate about the world of decentralized finance and the novelties brought by Web 3.0, I write articles for Cryptoast to help make blockchain more accessible to everyone. Convinced that cryptocurrencies will change the future very soon.
Maximilien Prue
669 items
