HSBC And IBM Successfully Pilot Multi-Ledger CBDC Transactions
Banking giant HSBC and tech icon IBM have successfully executed cross-realm and end-to-end digital asset transactions with a pilot test, which can also settle securities and forex.
On Thursday, HSBC and IBM announced a successful test of an advanced token and digital wallet settlement between two central bank digital currencies (CBDCs) in a cloud environment. The experiment consisted of transactions between CBDCs, eBonds, and FX.
IBM’s Hyperledger Fabric and enterprise technology provider R3’s Corda served as the basis of the distributed ledger and facilitated the transactions.
Overseen by central bank Banque de France, the project was part of a series of tranche projects to implement digital Euro. Earlier the French and Swiss central banks reported positive results on a pilot run of the digital Swiss Franc and Euro. Regardless, both central banks raised caution on the subject, citing regulatory concerns.
Mark Williamson, managing director of GFX eRisk, partnerships & propositions at HSBC, said:
“Interoperability across different distributed ledgers and technologies was key in demonstrating how to save time, reduce market risk and improve security for transactions between central banks, commercial banks, and in time our clients around the world.”
Likhit Wagle, general manager of global banking & financial markets at IBM, added:
“As central banks around the world begin to explore the potential for CBDC to bring greater transparency and security to financial transactions, this initiative provides a comprehensive roadmap.”
CBDCs have been gaining traction in part due to their utility as a means to combat the rises of stablecoins, which, to some, represent a threat to the financial system.
Just during December, Australian Reserve Bank’s Project Atom CBDC research uncovered numerous benefits. Around the same time, Kazakhstan’s central bank reported positive results on its CBDC pilot project. The Eastern Caribbean CBDC expanded to two other countries, and Russia is prioritizing the development of a digital Ruble.
