BIS COMPARES PROJECTS TO TRANSFER CENTRAL BANK DIGITAL CURRENCIES ACROSS BORDERS

Last updated: June 19, 2025, 19:07 | Written by: Raoul Pal

Imagine a world where sending money across borders is as seamless as sending a text message.No more exorbitant fees, lengthy processing times, or opaque exchange rates.This vision is driving the exploration of central bank digital currencies (CBDCs), and the Bank for International Settlements (BIS) is at the forefront of evaluating how these digital currencies could revolutionize international payments.Recently, the BIS Innovation Hub released a groundbreaking report analyzing four distinct projects focused on the cross-border transfer of wholesale CBDCs.This report meticulously examines the technical feasibility of these projects, while also shedding light on the significant policy and practical hurdles that still need to be addressed before widespread implementation.But why is this important, and what are the potential benefits and challenges?As central banks worldwide grapple with the digital transformation of finance, the BIS's findings offer crucial insights into the future of cross-border payments, the potential macro-financial implications, and the role CBDCs could play in a more interconnected global economy. this report takes stock of the international dimensio n of central bank digital currency (CBDC, see glossary) projects and the extent to which they could be used for cross-border payments. The report also investigates possible macro-financial implications associated with the cross-border use of CBDCs. TheThis article delves into the details of the BIS report, exploring the projects analyzed, the key findings, and the path forward for cross-border CBDC transfers.

Understanding Central Bank Digital Currencies (CBDCs)

Before diving into the BIS report, it's essential to understand what CBDCs are and why they are generating so much interest.Simply put, a CBDC is a digital form of a country's fiat currency, issued and regulated by the central bank. What project is the BIS going choose for CBDCs? of Australian, Malaysian, Singaporean and South African banking authorities. The projects looked at both cross-border payment, where the payer and a payee are residents of different jurisdictions and payment is made in the currency of the payer s jurisdiction or in another currency, and offshore payments, where payment takes place take placeThink of it as a digital banknote, backed by the full faith and credit of the government.CBDCs differ from cryptocurrencies like Bitcoin in that they are centralized and controlled by the monetary authority.

There are generally two types of CBDCs:

Retail CBDCs: These are designed for everyday use by consumers and businesses, similar to physical cash but in digital form.
Wholesale CBDCs: These are restricted to financial institutions and used for interbank payments and settlements. It tested the cross-border trading and settlement of hypothetical euro, Singapore dollar and Swiss franc wholesale central bank digital currencies (wCBDCs) between simulated financialThe BIS report focuses primarily on wholesale CBDCs.

A 2025 BIS survey revealed that a staggering 86% of central banks are actively researching the potential of CBDCs, with 60% experimenting with the technology and 14% deploying pilot projects.This widespread interest underscores the transformative potential of CBDCs and their ability to reshape the financial landscape.

The BIS Report: A Deep Dive into Cross-Border CBDC Transfer Projects

The BIS Innovation Hub's report offers a comprehensive overview of four distinct projects exploring the cross-border transfer of wholesale CBDCs. The Bank for International Settlements (BIS) Innovation Center released a report on Tuesday looking at four projects that looked atThese projects aimed to address the inefficiencies and challenges inherent in current cross-border payment systems.

Overview of the Projects

The report takes stock of the international dimension of central bank digital currency (CBDC) projects and the extent to which they could be used for cross-border payments. A 2025 BIS survey of central banks found that 86% are actively researching the potential for central bank digital currencies, 60% were experimenting with the technology and 14% were deploying pilot projects. In simple terms, a central bank digital currency would be a digital banknote.Here's a brief overview of each project:

Project Jura: Involved the central banks of France and Switzerland.It tested the cross-border trading and settlement of hypothetical euro, Singapore dollar and Swiss franc wholesale CBDCs between simulated financial institutions.
Project Dunbar: A collaboration between the central banks of Australia, Malaysia, Singapore, and South Africa.This project explored a common platform for cross-border payments using multiple CBDCs.

The specific details of the other two projects were not explicitly mentioned in the provided snippets. BTCUSD Bitcoin BIS compares projects to transfer central bank digital currencies across borders. The international bank found high technical feasibility among the projects, but significant work onHowever, the overall goal across all four projects was to assess the technical feasibility and potential benefits of using wholesale CBDCs for cross-border payments.

Key Findings: Technical Feasibility and Remaining Challenges

The BIS report concluded that the projects demonstrated the technical feasibility of transferring wholesale CBDCs across borders. The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfers across borders. The projects demonstrated the technical feasibility of the transfers, the BIS found, but practical and policy issues remain outstanding.This is a significant step forward, proving that the underlying technology is capable of supporting cross-border CBDC transactions.

However, the report also highlighted several outstanding challenges that need to be addressed before widespread implementation.These challenges can be broadly categorized as:

Practical Issues: These include issues related to the design and implementation of CBDC systems, such as interoperability between different CBDC platforms, liquidity management, and cybersecurity risks.
Policy Issues: These encompass regulatory and legal considerations, such as cross-border regulatory harmonization, anti-money laundering (AML) and combating the financing of terrorism (CFT) compliance, and data privacy concerns.
Legal and Governance Frameworks: The international bank found high technical feasibility among the projects, but significant work on legal and governance frameworks still remains to be done.

These challenges underscore the complexity of implementing cross-border CBDC systems and the need for international cooperation and coordination to address them effectively.

The Potential of Cross-Border CBDCs: Addressing Current Inefficiencies

One of the primary motivations for exploring cross-border CBDCs is to address the inefficiencies and challenges inherent in current cross-border payment systems. The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfers across borders. The projects demonstrated the technical feasibilityThese inefficiencies include:

High Costs: Cross-border payments often involve multiple intermediaries, each charging fees that can significantly increase the overall cost.
Slow Processing Times: Traditional cross-border payments can take days or even weeks to settle, due to the involvement of multiple banks and correspondent banking relationships.
Lack of Transparency: It can be difficult to track the status of a cross-border payment and identify the source of delays or errors.
Limited Access: Many individuals and businesses, particularly in developing countries, lack access to cross-border payment services.
Different Legal, Regulatory, and Technical Requirements: These create additional layers of complexity and can hinder the smooth flow of cross-border payments.

Cross-border payments with CBDCs can be envisioned in two fundamentally different ways. BIS compares projects to transfer central bank digital currencies across borders . news and more. Buy, Sell and Swap bitcoin, ethereum and 350 cryptocurrencies on BitSwapNow.The first scenario assumes availability of a retail CBDC of a given jurisdiction to anybody inside and outside of that jurisdiction, with limited to no coordination between the issuing central banks.The BIS hopes the public-private partnership model of this project will seek to overcome several structural inefficiencies in how payments happen today, especially across borders, which add a layer of challenges: different legal, regulatory and technical requirements, operating hours and time zones.

CBDCs have the potential to address these inefficiencies by:

Reducing Costs: By eliminating intermediaries and streamlining payment processes, CBDCs can significantly reduce the cost of cross-border payments.
Speeding Up Processing Times: CBDC transactions can be settled almost instantaneously, eliminating the delays associated with traditional payment systems.
Improving Transparency: CBDC transactions can be tracked in real-time, providing greater transparency and accountability.
Enhancing Access: CBDCs can provide access to cross-border payment services for individuals and businesses that are currently excluded from the financial system.

Two Scenarios for Cross-Border CBDC Payments

The BIS report outlines two fundamentally different scenarios for cross-border payments using CBDCs:

Retail CBDC Availability: This scenario envisions a situation where a retail CBDC issued by one jurisdiction is available to anyone, both inside and outside that jurisdiction.This approach would require minimal coordination between central banks.
Wholesale CBDC Platforms: This scenario involves the establishment of dedicated platforms for cross-border payments using wholesale CBDCs. The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digitalThis approach would require greater coordination between central banks to ensure interoperability and regulatory harmonization.

Each scenario has its own advantages and disadvantages. BIS compares projects to transfer central bank digital currencies across borders Cointelegraph By Derek Andersen Uncategorized JThe retail CBDC availability approach is simpler to implement but may raise concerns about regulatory arbitrage and financial stability. BIS compares projects to transfer central bank digital Coin SurgesThe wholesale CBDC platform approach is more complex but may offer greater control and stability.

Macro-Financial Implications of Cross-Border CBDCs

The BIS report also investigates the potential macro-financial implications associated with the cross-border use of CBDCs.These implications include:

Capital Flows: Cross-border CBDC payments could potentially increase the volatility of capital flows, particularly in emerging market economies.
Exchange Rates: The widespread use of CBDCs could affect exchange rates and challenge the traditional role of national currencies.
Monetary Policy: CBDCs could potentially complicate the implementation of monetary policy, particularly in countries with highly dollarized economies.
Financial Stability: The adoption of CBDCs could have implications for the stability of the financial system, particularly if there is a sudden shift away from traditional bank deposits.

These macro-financial implications highlight the need for careful consideration and international cooperation to mitigate potential risks and ensure that the adoption of cross-border CBDCs is beneficial for the global economy.

What Project is the BIS Going to Choose for CBDCs?

The BIS is not necessarily ""choosing"" one specific project to implement CBDCs.Instead, it is actively exploring and comparing different approaches to understand the potential benefits and challenges of each.The four projects highlighted in the report represent a diverse range of approaches, and the BIS is likely to draw insights from each to inform its future work on CBDCs.

The ultimate goal of the BIS is to foster international cooperation and collaboration in the development of CBDCs, ensuring that they are designed and implemented in a way that promotes financial stability, efficiency, and inclusion.

Addressing Common Concerns About CBDCs

The concept of CBDCs often raises several concerns among the public. BIS compares projects to transfer central bank digital currencies across borders The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfersHere are some common questions and answers:

Are CBDCs a threat to privacy?

This is a valid concern.The design of CBDCs will need to carefully balance the need for transparency and accountability with the need to protect user privacy.Some potential solutions include the use of privacy-enhancing technologies and strict data protection regulations.

Will CBDCs replace cash?

It is unlikely that CBDCs will completely replace cash. BIS compares projects to transfer central bank digital currencies across borders BIS compares projects to transfer central bank digital currencies across bordersCentral banks are likely to continue issuing physical currency alongside digital currency to provide users with a choice and ensure access for those who may not have access to digital technology.

Are CBDCs a tool for government surveillance?

The potential for government surveillance is a concern that needs to be addressed through appropriate legal and regulatory frameworks.Independent oversight and strong data protection laws are essential to prevent abuse.

Could CBDCs destabilize the banking system?

If there is a sudden shift away from traditional bank deposits towards CBDCs, it could potentially destabilize the banking system. The Bank for International Settlements (BIS) Innovation Center released a report on Tuesday looking at four projects that looked at BIS Compares Central Bank Digital Currency Transfer Projects Across Borders - Currency InsiderHowever, central banks can mitigate this risk by carefully managing the supply of CBDCs and implementing appropriate liquidity management tools.

The Path Forward: Collaboration and Innovation

The BIS report highlights the need for continued collaboration and innovation to realize the full potential of cross-border CBDCs.Key areas for future work include:

Developing Common Standards: Establishing common standards for CBDC interoperability is essential to ensure that different CBDC systems can seamlessly connect and exchange value.
Harmonizing Regulations: Harmonizing regulations across jurisdictions is crucial to address legal and policy challenges related to cross-border CBDC payments.
Exploring New Technologies: Exploring new technologies, such as distributed ledger technology (DLT) and zero-knowledge proofs, can help to improve the efficiency, security, and privacy of CBDC systems.
Engaging with the Private Sector: Engaging with the private sector is essential to foster innovation and develop practical solutions for implementing cross-border CBDCs.
Promoting Financial Inclusion: Ensuring that CBDCs are designed to promote financial inclusion and provide access to payment services for underserved populations.

By addressing these key areas, the global community can work together to create a future where cross-border payments are faster, cheaper, more transparent, and more accessible to all.

The Future of Cross-Border Payments with CBDCs

The Bank of International Settlements (BIS) is diligently examining projects aimed at revolutionizing cross-border payments through central bank digital currencies (CBDCs). The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfers across borders. The projects demonstrated the technical feasibility of the transfers, the BIS found, but practical and policy issues remain outstanding. The report considered the Jura project involving the central banksTheir comprehensive report highlights the immense potential of this technology to overhaul existing systems. The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfers across borders. The projects demonstrated the technical feasibility of the transfers, the BIS found, but practical and policy issues remain outstanding. The report considered the Jura project involving the central [ ]These projects, showcasing the feasibility of digital currency transfers between nations, hint at a future where international financial transactions are streamlined, efficient, and more accessible.

However, the journey is far from over. The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfersThe BIS report underlines the need to address crucial practical and policy issues to fully realize the benefits of CBDCs.Concerns surrounding privacy, regulatory frameworks, and macro-financial stability must be carefully considered and resolved.Collaboration between central banks, governments, and the private sector is vital to establish common standards, harmonize regulations, and foster innovation.

The transition to a world powered by cross-border CBDCs promises transformative changes, but only through careful planning, coordinated action, and a commitment to addressing potential risks can we unlock the full potential of this technology.As the BIS continues to analyze, compare, and refine these projects, the world moves closer to a future of seamless, efficient, and inclusive global payments.

Conclusion: Key Takeaways and the Path Forward

The BIS's comparison of projects focused on transferring central bank digital currencies across borders reveals a promising but complex landscape. The BIS hopes the public-private partnership model of this project will seek to overcome several structural inefficiencies in how payments happen today, especially across borders, which add a layer of challenges: different legal, regulatory and technical requirements, operating hours and time zones.While the technical feasibility of cross-border CBDC transfers has been demonstrated, significant work remains to address practical, policy, and legal challenges. Cross-border payments with CBDCs can be envisioned in two fundamentally different ways. The first scenario assumes availability of a retail3 CBDC of a given jurisdiction to anybody inside and outside of that jurisdiction, with limited to no coordination between the issuing central banks.The potential benefits, including reduced costs, faster processing times, and improved transparency, are substantial.However, careful consideration must be given to macro-financial implications and potential risks to financial stability.

Key takeaways from the BIS report include:

Cross-border payments with CBDCs have the potential to significantly improve the efficiency and accessibility of international transactions.
International cooperation and coordination are essential to address the challenges associated with cross-border CBDC transfers.
The design of CBDCs must carefully balance the need for transparency and accountability with the need to protect user privacy.
The potential macro-financial implications of CBDCs need to be carefully considered and mitigated.

The path forward requires continued collaboration, innovation, and a commitment to addressing the challenges and realizing the potential benefits of cross-border CBDCs. The international bank found high technical feasibility among the projects, but significant work on legal and governance frameworks still remains to be done. The Bank of International Settlements (BIS) Innovation Hub released a report Tuesday looking at four projects that examined wholesale central bank digital currency (CBDC) transfers across borders. The projects demonstrated the technical [ ]As central banks around the world continue to explore and experiment with CBDCs, the BIS's work will be crucial in shaping the future of international payments.The public-private partnership is key in overcoming the structural inefficiencies of cross-border transactions.