TL;DR
- The Bank for International Settlements (BIS) has launched Agora, a blockchain project to overhaul international payments, with the participation of major banks and financial institutions.
- Participants include JPMorgan Chase, Deutsche Bank, UBS, Visa, and Mastercard, along with seven central banks from key regions.
- Agora aims to create a platform for trading tokenized assets using digital currencies backed by central banks.
The Bank for International Settlements (BIS) has launched Agora, an ambitious blockchain-based project designed to reform international payments, with the participation of some of the most important actors in the financial sector.
This innovative project, initiated in May, has the support of recognized institutions such as JPMorgan Chase & Co., Deutsche Bank AG, UBS Group AG, Visa Inc., and Mastercard Inc., as well as collaboration from seven central banks from key regions, including the United States, the euro area, Japan, and England.
Agora aims to create an international platform where tokenized assets can be traded using digital currencies backed by participating central banks.
The platform will allow investors to conduct cross-border transactions using central bank-issued money, which is considered virtually risk-free compared to cash, the only form of safe money currently available without a digital version.
The BIS, based in Basel, Switzerland, and known as the bank of central banks, facilitates the transfer of money between monetary institutions and also serves as a research center for them.
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Through its Innovation Hub, the BIS is exploring different solutions to improve the global financial system. Agora stands out as the largest and most complex blockchain project in terms of geographical scope and number of participants, surpassing other similar initiatives such as mBridge, which also enables instant cross-border payments and has recently included commercial banks.
The Agora project aims to establish a new regulated financial market infrastructure to facilitate cross-border payments, enhancing the speed and efficiency of these transactions through blockchain technology. Collaboration with the Institute of International Finance (IIF) has been crucial in completing the selection and onboarding process for participants, contributing to the project’s smooth progress.
With Agora, the BIS aims to transform the way international payments are managed, leveraging technology to modernize and optimize the services currently offered by central and commercial banks.
