New York Fed to Participate in Joint International Research Effort on Tokenization and Cross-Border Payments

NEW YORK – The Federal Reserve Bank of New York New York Innovation Center (NYIC) announced today that it will participate in an international technical research project which will explore whether tokenization of central bank money and commercial bank deposits operating on a shared programmable ledger can improve wholesale cross-border payments.

Project Agorá, a new effort led by the Bank for International Settlements (BIS) Innovation Center in partnership with the Institute of International Finance, will bring together seven central banks and financial institutions from each of their respective jurisdictions to investigate ways to increase the speed and transparency of international wholesale payments and lower associated costs and risks. The project will focus on overcoming structural inefficiencies common in current cross-border payments related to different legal, regulatory and technical requirements, operating hours and time zones, and different financial integrity controls.

"We look forward to participating in Project Agorá together with our central banking collaborators and continuing to build on NYIC's contributions to the public dialogue about the future of money and payments," said Per von Zelowitz, director of the New York Innovation Center.

Including the New York Federal Reserve, the seven participating central banks are the Bank of England, the Bank of France, the Bank of Japan, the Bank of Korea, the Bank of Mexico and the Swiss National Bank. The BIS issue a call of interest for financial entities interested in collaborating in the project. The BIS and participating institutions will detail the findings of the Agorá Project through public reports.

NYIC's participation in this project is limited to research and experimentation.

About the New York Innovation Center
He New York Innovation Center (NYIC) at the Federal Reserve Bank of New York bridges the worlds of finance, technology and innovation. Established in 2021 in partnership with the Bank for International Settlements Innovation Center, NYIC generates insights into high-value central banking opportunities through research, analysis and technical experimentation to drive advances in central banking and improve operations. of the global financial system. .

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